Superloop, the internet service provider founded by entrepreneur Bevan Slattery, is considering lobbing a higher bid for software group Symbio despite describing its last offer as its “best and final”.
The company’s $2.91 per share bid was trumped by Aussie Broadband on Friday. Aussie Broadband has offered $3.15 per share, in cash and stock, valuing Symbio, which provides communications services that allow people to make phone calls over the internet, at $271 million.
The value of the Aussie Broadband offer, which includes $2.36 in cash, surpasses an earlier cash and stock offer by Superloop, and will be recommended by Symbio’s board if it proceeds.
Competition for NBN provision has intensified. Superloop and Aussie Broadband are eating into market share held by the largest telcos. James Alcock
While Superloop said on Friday its “best and final offer” had lapsed given Symbio had not accepted it or recommended it to shareholders, takeover rules governing schemes of arrangement allow it to return with another offer. Superloop is expected to update investors on whether it will abandon its pursuit of Symbio or consider a further offer.
Its initial cash and stock offer in August, via a scheme of arrangement, was valued at $2.85 per share. Superloop raised the offer in September to value Symbio at $2.91 per share including $1.42 in cash.
Investors believe Aussie Broadband’s bid could be a significant concern to Superloop, given Symbio is one of its largest customers and contributes more than $5 million in annual revenue.
Superloop chief executive Paul Tyler, who has spent the past few years cleaning up the fibre optic provider’s balance sheet through a strategic acquisition of Exotel, told investors on a call last quarter: “I
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