The sale was first announced in October 2021. The gross sale price, before the cost of the Indefeasible Right of Use ('IRU') purchased by Superloop, remained unchanged at A$140 million, with cash settlement proceeds of approximately A$125 million.
Paul Tyler, CEO and Managing Director of Superloop, said, "This successful sale is a significant next step in our three-year turnaround plan aimed at simplifying the business to focus on core markets of scale.
"This divestment, at a 30% premium to the carrying value of the associated assets, strengthens our balance sheet and opens up new pathways for growth. "Our intent remains to deploy this capital to grow the business aggressively, across all three market segments as a challenger.
"Our focus remains on consumers looking for better service and value, businesses seeking to move away from underperforming and uncompetitive legacy arrangements, and new wholesale partners seeking access to automated, high-
quality infrastructure on much more flexible terms.
"Our significant net cash position enables us to consider further investment in organic growth, and on strategically-aligned M&A opportunities.”
Completion of the sale comes on the back of a strong Q3 with continuing organic growth momentum in all of Superloop’s customer segments. Particularly pleasing is the traction now being seen in the business segment with demand for mid-market and enterprise connectivity. Demand for Superloop’s business solutions, including SD-WAN, managed WiFi and security products such as SASE, is now returning post the Covid period headwinds as demonstrated by recent new contract wins including Ixom, Coates, ATB Morton, Cedar Pacific, KordaMentha, and Penske.
Momentum in the other segments was similarly pleasing with Q3 seeing the consumer segment deliver its strongest-ever net subscriber growth and wholesale connect customers, ending the quarter with over 16,000 subscribers.
More details on our investor page.