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Brookfield-Led Group Buys Australia’s Uniti for $2.7bn


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The proposal for Uniti is Morrison & Co's latest venture into telecom after funds managed by it acquired a 49% stake in Telstra's mobile tower business last year. Photo: Uniti.

 

A consortium led by Canada’s Brookfield Asset Management has agreed to buy Uniti for A$3.6 billion ($2.7 billion), the Australian telecoms group said in a stock exchange filing on Thursday.

The consortium will pay A$5 per share, which is a premium of more than 58% over its share price on March 14, when the bid was made.

The cash price share implies an equity value, on a 100% fully diluted basis, of about $3.62 billion and an enterprise value of about $3.73 billion.

As well as Brookfield, the consortium consists of New Zealand infrastructure investor Morrison & Co and Australian pension scheme Commonwealth Superannuation Corporation.

The agreement puts an end to the bid by Macquarie Asset Management and PSP Investments to acquire the company, also for A$5 a share, last month.

The Brookfield consortium matched that offer, on the condition Uniti would terminate discussions with Macquarie and PSP.

Uniti began as a wireless broadband provider, listing in Australia in 2019 with a valuation of just A$25 million but more than doubled in size when it acquired fibre broadband infrastructure owner OptiComm in 2020.

The company competes with the Australian government-owned National Broadband Network to connect real estate developments to the internet via fixed-line fibre optic cables.

 

  • George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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