Superloop in non-binding $243m bid for Symbio

Superloop has made a non-binding $243 million play for Symbio, an ASX-listed UCaaS and collaboration services provider that is also one of its largest wholesale customers.

The combination of the two telcos, if approved, would create a single entity “with a compelling breadth of services and strengthened customer proposition”, covering “data, voice and messaging services”, Superloop said in a financial filing.

There is also the potential to “realise … significant cost synergies” and to “create a business with an attractive balance of revenue and profit contributions,” it said.

Superloop said its offer for Symbio would be a mix of cash and shares, the latter representing “a significant portion of the consideration”.

It is conditional on the completion of due diligence, documentation and “a unanimous… recommendation” from the Symbio board.

“The combination of Superloop and Symbio would create a strong and attractive telecommunications business,” Superloop CEO and managing director Paul Tyler said.

“Superloop and Symbio currently have an excellent working relationship, with Symbio being one of Superloop’s largest wholesale clients, and the combination of the two businesses would be highly accretive.” 

Superloop added that the proposal is “preliminary and incomplete, and there is no guarantee that any agreement will be reached or that a transaction will eventuate.”