Swoop buys 16.99% of Vonex, proposes higher acquisition price

Swoop has announced the acquisition of approximately 16.99% of the issued ordinary shares in Vonex. The shares were bought at an average price of AUD $0.04 per share, costing Swoop around AUD $2.45 million, which was funded from existing cash resources.

The move follows Swoop's submission of a non-binding proposal to acquire Vonex via a scheme of arrangement at AUD $0.04 per Vonex share. This proposal represents a premium to the current scheme of arrangement proposed by Maxo Telecommunications at AUD $0.0375 per share.

Alex West, Swoop's CEO, commented, "This is an exciting step in the right direction and we believe our proposal will create significant value for both the Swoop and Vonex businesses. As we have previously commented, Swoop believes that we have provided a superior proposal and this provides the best outcome for the long standing shareholders of Vonex, as well as being an excellent opportunity for Swoop shareholders."

West added, "Swoop is in a strong position to be able to both acquire the business, integrate and extract material synergies given the Swoop team has a demonstrated ability to acquire and integrate business well. We look forward to continuing our discussions with the Vonex Board and major shareholders to create the next large scale national telecommunications company."

Highlighting Swoop's stance on the competing offer, West noted, "To confirm, Swoop does not support the MaxoTel Scheme and currently does not intend to vote its Vonex stake in favour of it."

Swoop has also informed that it has submitted to Vonex a draft scheme implementation deed on substantially the same terms as the MaxoTel Scheme, with options tailored for cash and scrip consideration. In addition, Swoop confirmed that its existing financier, Westpac, has started a credit approval process to provide committed funding for the acquisition of Vonex.

Swoop, a prominent player in the Australian telecommunications sector, offers data and voice services to wholesale, business, and residential customers. The company has a robust network that aims to deliver high throughput and reliable telecom services.

The acquisition is part of Swoop's broader strategy to expand its business and integrate complementary services. Since its listing in May 2021, Swoop has acquired several businesses, including Speedweb, Countrytell, Voicehub, Luminet, iFibre, Beam Internet, and Community Communications. Notably, in November 2022, Swoop completed its largest acquisition to date, purchasing national mobile network operator Moose Mobile for AUD $24 million.

Recent industry recognitions also highlight Swoop's growth. The company was named one of AFR's Digital Transformation Leaders for 2023, receiving a special distinction as 'One to Watch'. Additionally, Swoop was a finalist in the 2023 Australian Growth Company Awards.