Vocus $3.5b Takeover Spells Doom For iPrimus And Dodo
Analysts say Vocus’s new owners may be tempted to cut loose the telco’s retail broadband businesses, Dodo and iPrimus, as it evaluates their long-term future.
This follows a decision by the Vocus board to back $3.5 billion bid for the company by Macquarie’s infrastructure fund and Aware Super.
Vocus operates more than 30,000km of fibre across major Australian cities, and the fibre business, which delivered $128.7 million in earnings in the most recent half-year, is seen as the key asset being sought by its suitors.
With the fibre business seen as the main growth area, it would be no surprise if iPrimus and Dodo were sold off, after a torrid year in which Vocus was taken to court for misleading advertising involving services.
The Vocus offshoots were already on the chopping block before the $3.5 billion takeover, due to what Vocus Group CEO Kevin Russell described as short-term issues.