Pure Gold Seen In Vocus Assets: Takeover Teams Prep For Action
Would-be takeover agencies are sharpening their blades for a possible move on assets of the currently stressed Vocus telecoms group, a new report from Credit Suisse suggests.
The report follows the 28 percent crash in Vocus shares earlier this month on the ASX, taking its plunge over the last 12 months to 60pc, despite the recent purchase of assets from Nextgen Networks, including Australia’s longest fibre-optic cable at more than 17,000km.
According to Credit Suisse, a canny suitor could be expected to extract more than $1 billion from Vocus’s portfolio of non-core assets, including datacentres, energy, New Zealand operations and possibly the consumer broadband business.
And then there’s the cables. “We believe that the ‘core’ Vocus corporate and wholesale business is underpinned by a strong base of network assets consisting of Vocus/Amcom metro fibre (with 5584 buildings connected) and Nextgen long-distance fibre,” Credit Suisse says.
It adds: “We believe that issues with systems and processes mean that these assets are not operating to their full potential.” Stand by for action …