As part of the deal, Superloop has retained 15-year right of use on the existing and potentially expanded Singapore and Hong Kong networks. The company said this would allow it to continue to offer end-to-end services on the Indigo submarine cable between Australia, Indonesia, and Singapore. The duo making the purchase will have a preferential deal on Indigo access, while Superloop will operate and support the Singapore network for at least three years at a cost of AU$1.5 million to the buyers. The deal is expected to be completed early next calendar year. “I recognised when I joined Superloop that one of our great opportunities was to look at the invested capital of the business and where appropriate, recycle it and re-invest in areas that will drive greater shareholder returns,” Superloop CEO and managing director Paul Tyler said. “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.” The company is claiming a 30% premium on the sale from its AU$108 million carrying value. Elsewhere on Monday, Spirit Technology Solutions, the company formerly known as Spirit Telecom, has sold its consumer assets for AU$5.1 million to DGTek. The company said it would book AU$2.5 million in profit from the sale. “The consumer internet business is not critical to future operations and represents less than 2% of Spirit’s revenue,” Spirit told the ASX. For its part, DGTek said the purchase would take its footprint up to 35,000 premises. Spirit also said it was considering several non-binding proposals to sell its fixed wireless towers.
Related Coverage
Uniti banks AU$29m in net profit while Superloop reports AU$32m lossSuperloop to purchase Exetel for AU$110 millionSpirit Technology hits new highs as Superloop narrows net lossTelstra rises as the new ACCC NBN speed report king