In news on Australian stocks, shares of the ASX-listed Superloop Limited (AU:SLC) jumped over 14% today following an acquisition offer from Aussie Broadband Ltd. (AU:ABB). Aussie Broadband announced its proposal to exchange 0.21 of its own shares for each Superloop share, resulting in an implied total value of nearly AU$467 million. ABB stock gained almost 2% following the announcement.
However, later in the day, Superloop turned down Aussie Broadband’s offer, stating it was “opportunistic” and undervalued the company. Superloop also referenced its first-half results for FY24, asserting that it had reported another period of growth-oriented performance.
More About the Offer
The deal represents a total value of $0.95 per share to Superloop shareholders, which is 33.2% above the volume-weighted average price, which stood at $0.71 as of February 23, for an all-scrip merger transaction. Aussie Broadband expressed confidence that the merger would create value for both shareholders of both companies and significantly enhance the customer base to a combined 1 million subscribers in a fiercely competitive industry.
H1 FY24 Results: Superloop in Spotlight
Last week, Superloop released its first-half results for FY24, delivering strong performance in revenue and customer growth. The company’s total revenue increased by 32.7% to AU$197.6 million compared to the corresponding period in the prior year. Moreover, Superloop achieved record organic growth in its customer base, adding over 40,000 net new customers in the first half, representing a 38.1% increase.
This year also marks the first of the three years of its “double down strategy,” which aims at doubling the company’s business revenues over the period.
The solid H1 FY24 results pushed SLC stock higher, leading to a year-to-date gain of 47%.
What is the Target Price for Superloop?
On TipRanks, SLC stock has received a Moderate Buy consensus rating based on two Buy recommendations. The Superloop share price target is AU$1.00, which indicates that the stock is fully valued at current levels.
