Superloop parts with HK business and Singapore assets for AU$140 million

19-Oct-2021 Intellasia | ZDNet | 5:02 AM Print This Post

Superloop announced on Monday morning it would be divesting its Hong Kong business and parts of its Singapore business for AU$140 million to Columbia Capital and DigitalBridge.

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 percent 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 percent 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.

https://www.zdnet.com/article/superloop-parts-with-hong-kong-business-and-singapore-assets-for-au140 million/

 

Category: Hong Kong

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