Swoop Telecommunications to relist on ASX through reverse takeover

By on
Swoop Telecommunications to relist on ASX through reverse takeover

Australian fixed wireless and wholesale network infrastructure carrier Swoop Telecommunications will list on the ASX through a reverse takeover.

Swoop will be acquired by Stemify Ltd in a deal worth $61.3 million, which also includes NodeOne, a Perth-based NBN retail service and fixed wireless provider.

Stemify, listed under the suffix SF1, is a shell company that formerly sold edu-tech products and 3D printers. It had a market capitalisation of $3 million.

Through the listing, Swoop aims to raise $20 million at 50 cents per share, appointing Morgans Corporate Limited as lead manager of the public offer.

The company plans to further expand its infrastructure nationally and fund potential acquisitions to expand its products and offerings.

Recent backers James Spenceley and Tony Grist will join the board, as well as long-time telco exec Matt Hollis. Swoop also received investments from Andrew Forrest’s family investment company Tattarang.

“This is an extremely exciting time in the telecommunications industry and this listing will enable us to capture more of the market, expand our offering and allow us to provide more services to customers across Australia,” Swoop chief executive Alex West said.

Commenting on the listing, NodeOne chief executive Richard Whitling said, “Joining forces with Swoop, a highly-respected Australian telco with an experienced board and management team, will enable us to expand our expertise and deliver an even better Internet service to Western Australia.”

“NodeOne will continue to operate under its current brand in the WA market leveraging the work already done in building one of WA’s favourite telcos.”

Swoop was formerly known as Cirrus Communications, one of the early fixed wireless players in Australia when it was founded in 2004. It operates 220 towers across all mainland states and employs 110 staff.

Board chairman James Spenceley said, “After a few years away from the telco industry, it is great to be back and be back at a time where there is so much opportunity.”

“Additionally, to be backed by one of Australia’s richest men and have an ever-growing team of high calibre Industry veterans in the business, makes this a very exciting journey ahead.”

The deal is subject to Stemify shareholder approval, with the meeting scheduled on 6 April. The public offer will run from 17 March to 9 April, with an expected completion date of 22 April.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © CRN Australia. All rights reserved.
Tags:

Most Read Articles

You must be a registered member of CRN to post a comment.
| Register

Log In

Username / Email:
Password:
  |  Forgot your password?