Vocus Communications (ASX: VOC) now holds a 10 per cent interest in Amcom Telecommunications (ASX: AMM) as it looks to potentially combine the two businesses.
In a statement to the ASX, Vocus Communications CEO James Spenceley said that the company has approached Amcom Telecommunications’ board of directors to gauge their interest about bringing the two companies together.
If it goes ahead, Amcom Telecommunications shareholders will receive Vocus Communications scrip or credit for their shares in Amcom.
“The assets and operations of Vocus and Amcom are highly complementary and the potential combination offers an enhanced growth platform, while creating a truly national player to capitalise on the evolving opportunities in the telecommunications sector," Spenceley said in a statement.
“The proposed scrip consideration represents an attractive opportunity for Amcom shareholders to share in the ongoing growth of the high quality businesses and the favourable industry positioning of the combined entity,” he added.
In July 2014, Vocus Communications confirmed that it had acquired New Zealand-based fibre provider FX Networks for $107.7 million (NZ$115.8 million).
The FX Networks business is expected to deliver between NZ$13.5 to $14.5 million of Vocus’ earnings before interest, depreciation and amortisation (EBITDA) in the first year following acquisition.
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