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Aussie Broadband has received Singaporean regulatory approval to own up to a 19.9 percent stake in rival internet provider Superloop, a month after it was forced to sell 38 million shares.
Phil Britt, Aussie Broadband
Singapore’s telco regulator, the Infocomm Media Development Authority (IMDA), granted unconditional approval for Aussie Broadband to own up to 19.9 percent of Superloop, saying it’s “unlikely to substantially lessen competition”.
The decision comes a month after Aussie Broadband sold Superloop shares to fit under a regulated 12 percent ownership cap.
Owning anything above 12 percent requires approval from IMDA.
Aussie Broadband challenged the direction to sell shares by applying for an injunction. However, the application was dismissed by the court, leaving the telco with no choice but to sell part of its stake.
The sale resulted in a one-off gain of $13.4 million, after transaction costs and before tax.
Aussie Broadband said it was undecided if it would seek to acquire ownership of more shares.
“[Aussie Broadband] notes that it is under no obligation to acquire any further shares in [Superloop] and continues to review its existing shareholding in [Superloop],” it said in an ASX filing [pdf].
Aussie Broadband declined to comment further on whether it would repurchase the shares, which were initially bought ahead of the telco offering $466 million to acquire Superloop – a move the latter rejected in February.
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