Superloop takes in $140m from Hong Kong, Singapore asset selloff

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Superloop takes in $140m from Hong Kong, Singapore asset selloff
Paul Tyler (Superloop)

Superloop finalised the sell-off of its assets in Hong Kong and Singapore, taking in $140 million and reaffirming revenue guidance.

The sale of Superloop (Hong Kong) Limited and select assets from Superloop (Singapore) Pte Ltd to Columbia Capital and DigitalBridge Investment Management. The gross sale price was $140 million, with a cash settlement of approximately $125 million.

As a result, the company reaffirmed its full-year EBITDA guidance of $23 million to $25 million.

The telco announced the sale in October last year. At the time, the Brisbane company said the price was 30 percent above the $108 million value of the assets.

Superloop CEO Paul Tyler told shareholders that the sale was a significant next step in the company’s three-year turnaround plan.

"This divestment, at a 30 percent premium to the carrying value of the associated assets, strengthens our balance sheet and opens up new pathways for growth.

"Our intent remains to deploy this capital to grow the business aggressively, across all three market segments as a challenger.

"Our focus remains on consumers looking for better service and value, businesses seeking to move away from underperforming and uncompetitive legacy arrangements, and new wholesale partners seeking access to automated, high-quality infrastructure on much more flexible terms.

"Our significant net cash position enables us to consider further investment in organic growth, and on strategically-aligned M&A opportunities.”

The telco also reported growth in its business segment which it attributed to demand from the mid-market and enterprise for connectivity, SD-WAN, managed Wi-Fi and security products such as SASE.

The company revealed new customer wins with Ixom, Coates, ATB Morton, Cedar Pacific, KordaMentha, and Penske signing deals.

The company’s consumer segment had its strongest-ever net subscriber growth and wholesale connect customers, Superloop said it now had more than 16,000 subscribers.

The Exetel acquisition also continues to perform well with all targeted synergies now exceeded and the customer base now stabilised, the company said.

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