Vocus in Nextgen Buy

North West Cable system

Nextgen Group has entered into a conditional agreement with Vocus Communications for the sale of the company’s network businesses, including the North West Cable system and the planned Australia Singapore Cable. 

The deal includes Nextgen’s 17,000km national fibre network, the almost‐completed subsea Port Hedland to Darwin cable and the proposed Perth to Singapore subsea cable.

Reportedly, the deal is for an upfront cost of $807 million and deferred consideration of up to $54 million.

The purchase will be funded via a fully underwritten equity capital raising, comprising a pro-rata $452million entitlement offer with retail rights trading; an institutional placement of up to 26.5million shares to raise $200 million; and the balance to be funded via existing committed debt facilities.

Nextgen will continue to own its data centre business, Metronode, which operates as a separate entity.

Nextgen Group is owned by the Ontario Teachers’ Pension Plan (71%) and CIMIC Group Limited (29%). Both OTPP and CIMIC Group will retain ownership of the Group after the sale.

The proposed sale is subject to ACCC clearance and other customary completion conditions.

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