Uniti Wireless Ltd. agreed to fully acquire LBNCo Pty. Ltd., a builder and wholesale operator of private fiber networks, in a cash-and-stock deal worth A$100 million.
The Australian operator will fund the transaction's cash portion through a share placement and an entitlement offer.
Under the placement, the company targets to raise about A$18.7 million by issuing 15.5 million new fully paid ordinary shares at A$1.20 per share. Meanwhile, under the entitlement offer, Uniti Wireless intends to issue 67.9 million fully paid ordinary shares to eligible institutional and retail shareholders, in a bid to raise about A$81.5 million. Entitlements that were not taken up will be sold through a shortfall bookbuild.
The deal's stock portion involves the issuance of scrip worth about A$10 million.
In compliance to existing regulations, Uniti Wireless will transfer customers of its unit FuzeNet Pty. Ltd. that are serviced by LBNCo to an independent third party prior to deal closing. The third party will then purchase wholesale and business services from FuzeNet.
LBNCo will continue to be managed by its current senior leadership team after the deal is completed, with CEO Steve Picton joining Uniti Wireless' executive management.