Fibre company Vocus has ditched the idea of a New Zealand market listing of its local business in favour of a takeover deal from an Australian consortium.
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The ASX-listed company has penned a scheme implementation agreement with Macquarie Infrastructure and Real Assets (MIRA) and Aware Super at $5.50 per share, valuing the company at about $4.5 billion.
The company had considered alternatives, such as using the proceeds from an NZX listing of its New Zealand business, Vocus New Zealand, to pay down down debt and invest further in the business.
"Feedback from shareholders in recent weeks on the indicative offer of $5.50 originally received from MIRA has been overwhelmingly positive and there is a broad recognition that is a very fair value for Vocus shareholders," Chairman Bob Mansfield said.
Vocus said that although it had received strong interest from investors about the idea of a potential NZX listing, it would no longer pursue an IPO of Vocus New Zealand.
Managing director and chief executive Kevin Russell said the deal backed the company's view that Vocus' secure, Australian-operated fibre network was key to its future success in the market.
"As we enter this new stage of investment and growth, support from MIRA and Aware Super will provide the strongest possible foundation for the business and the capacity to invest in our key assets and provide exceptional service to our customers."
The deal remained subject to shareholder and court approval but if accepted, it was expected to be completed by the middle of 2021.