- Shares in Superloop (SLC) soar in early trade after the broadband provider announces it is selling some of its Asian assets for $140 million
- Superloop will sell the assets to Colombia Capital and DigitalBridge Investment Management at a 30 per cent premium on the assets’ current carrying value
- Superloop CEO and Managing Director Paul Tyler says the sale will “release significant shareholder funds and redeploy them into more strategically aligned assets”
- As part of the deal, Superloop will pay the buyers $15 million for a 15-year indefeasible right of use (IRU) over the sold Hong Kong and Singapore assets
- Shares in Superloop are up 11.9 per cent and trading at $1.09 each at 10:55 am AEST
Shares in Superloop (SLC) are soaring in early trade after the broadband provider announced it was selling some of its Asian assets for $140 million.
The company will sell its Hong Kong operations and some select Singapore assets to Colombia Capital and DigitalBridge Investment Management.
According to Superloop, the $140 million price tag represents a 30 per cent premium on the carrying value of the assets, which currently sits at $108 million.
Superloop CEO and Managing Director Paul Tyler said the sale came as part of the company’s strategy to recycle and re-invest key business capital.
“This sale of our Hong Kong business and select Singapore assets, at a premium to their carrying values, allows the company to release significant shareholder funds and redeploy them into more strategically aligned assets, higher growth opportunities and markets,” Mr Tyler said.
As part of the deal, Superloop will be paid an extra $1.5 million per year to continue to operate and provide support for its Singapore network for at least three years.
Meanwhile, Superloop will pay Columbia Capital and DigitalBridge $15 million for a 15-year indefeasible right of use (IRU) over the sold Hong Kong and Singapore assets and their future expanded networks. This long-term lease means even post-sale, Superloop will effectively be the temporary owner of these networks for at least a decade and a half.
By doing so, Superloop will remain exposed to these Asian markets and will be able to continue to provide support to customers connected to its major INDIGO submarine cable — a massive undersea fibre network connecting Sydney to Singapore.
At the same time, Columbia Capital and DigitalBridge will become key business partners for Superloop, working with the broadband provider to drive traffic to the INDIGO network through a five-year preferential supply deal.
“We are delighted to be working with Columbia Capital and DigitalBridge, both of which are global leaders in digital infrastructure,” Mr Tyler said.
“This partnership will provide opportunities to work more closely to monetise our international assets and leverage our respective infrastructures and complementary customer base.”
The company said it expected the transaction to be finalised early next year.
Shares in Superloop are up 11.9 per cent and trading at $1.09 each at 10:55 am AEST.