ADELAIDE: Uniti Group Limited (UWL) has completed its acquisition of 1300 Holdings Pty Ltd and subsidiaries (1300).
Settlement of the 1300 acquisition occurred with the issue of 12,345,682 ordinary fully paid shares in UWL, together with a net cash payment of $58 million.
The 1300 acquisition is highly complementary with UWL’s Speciality Services pillar and is forecast to deliver material additional earnings to the Group in FY20. The acquisition of 1300 further diversifies UWL’s revenue and earnings streams and delivers a significant increase in earnings and free cash flow.
The Board believes that the 1300 business will be 28% EBITDA per share accretive in FY20, based on the addition of $12 million EBITDA, including certain identified cost savings, on a proforma basis.
UWL Chairman, Graeme Barclay said of the 1300 acquisition: “This acquisition provides our Company with a significant increase in earnings and free cash flow, as well as a platform that will underpin UWL’s growth strategy in our expanding Speciality Services pillar. On behalf of the Board, I thank our Shareholders for their overwhelming support with the Placement and Rights Offer which enabled us to secure this exciting, highly accretive acquisition and to place UWL in an enviable position to further strengthen your profitable, growing company in the year ahead ”.
Edited by Kazim Rizvi