# UWL - Uniti Group



## System (18 December 2018)

Uniti Wireless is a supplier of fixed wireless broadband network and services as an alternative to nbn™ services and a replacement for ADSL connections. Currently operating in suburban and metropolitan Adelaide and areas of Melbourne, Uniti Wireless connects residential, business and enterprise customer premises to its network.

The Company has entered into a share sale and purchase agreement, pursuant to which the Company proposes to acquire the entire issued capital of FuzeNet Pty Ltd. FuzeNet Pty Ltd, together with its subsidiaries, operates the business of a retail service provider, predominantly reselling the non-nbn™ fibre infrastructure of competitors to nbn™ to provide broadband services to consumers delivered across the non-nbn™ fibre networks. 

Uniti Wireless is undertaking an IPO to fund the rapid expansion of the network and further accelerate the growth of the business.

It is anticipated that UWL will list on the ASX during January 2019.

https://unitiwireless.com


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## greggles (25 March 2019)

UWL up from 17.5c to 42c in nine trading sessions.

During that time IOOF Holdings Limited has reduced its holdings in UWL from 15.381% (20,151,811 shares) to 10.619% (13,912,769 shares).

There has also been some to and froing with the ASX over the cessation of employment of two company Directors, Ms Sasha Baranikov and Mr Che Metcalfe.


> Uniti Wireless Limited announces that Ms Sasha Baranikov and Mr Che Metcalfe have ceased employment with the Company, effective immediately.
> 
> Ms Baranikov and Mr Metcalfe were both Directors of the Company and have vacated those positions, also with immediate effect.
> 
> Ms Baranikov and Mr Metcalfe were the original founders of the Company and remain significant shareholders in the Company. Their shares remain escrowed for 2 years.




The following is the response of the company to an ASX Query Letter concerning the issue:


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## Ann (15 May 2019)

Up 10% so far today .99c

*Uniti Wireless splashes $2m on acquisition of CPaaS provider Call Dynamics*
_
Telecommunications provider Uniti Wireless (ASX: UWL) is set to shell out $2 million on the acquisition of communications platform-as-a-service (CPaaS) company Call Dynamics Pty Ltd.


Under the terms of the deal, Uniti will pay 63% of the consideration in cash and the remainder in Uniti ordinary fully paid shares, based on the volume weighted average price of the last 10 days’ trade.


The cash component will be split into two equal instalments – the first payable on completion of the transaction and the remainder payable 12 months after completion, subject to the achievement of forecast earnings in the 2020 financial year.


The share consideration will be subject to certain holding lock (or escrow) restrictions which will oblige Call Dynamics to utilise a securities broker nominated by Uniti. More..._


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## tech/a (15 May 2019)

Been trading this since 84 c


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## tech/a (16 May 2019)

tech/a said:


> Been trading this since 84 c




Actually bought it earlier


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## tech/a (16 May 2019)

The Duck was stopped out of this trade.


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## peter2 (29 May 2019)

Another small company (like ST1) building an alternative to the NBN in selected areas. This will become a very interesting sector if these companies can deliver a higher quality ISP than the NBN.


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## Ann (27 June 2019)

This little one may have had its run and be in need of a breather and travel sideways while I hold it in the July comp, let's see how it goes. It has ridden the 21dema beautifully without a break and may need to get back closer to the 55dema. It had a nice little delicate touch on the 21dema yesterday. The $1.84 may offer an overhead resistance for a bit. Hopefully it might break above before the end of the comp. The alternative could be for an excellent short which is pretty much my history in the comp! 

Note on the Exponential Moving Averages: I have two displayed, one is the 21dema and the second is the 55dema. I also have a 13dema, 144dema and a 233dema (not shown). Funny MA numbers you might say! I have been playing around with a new trading system and thought I would try out Fibonacci number sequences just for fun. I might have to go back to the stock standard MAs but meh, I don't think it matters in the wider scheme of things, any line in the sand should work.

This is yesterdays chart...


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## Ann (7 July 2019)

Just checking in with UWL....

AAAAGGGGGHHHH! The humiliation! It is at last place of the comp list this week down 16.8% 

Yeah not really humiliated, just jokin' folks! 

I felt it was in for a bit of consolidation/retrace, not something to have bought into at the beginning of the month IMO. It has failed the $1.56 support line but is currently sitting on the 21dema, lets hope there is enough elasticity in the MA to flick it up north. Time will tell!


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## tech/a (7 July 2019)

How does an average of price represented in a line drawn on the chart
Supply elasticity to a price of a stock.
Your implying it has some influence in price going forward?
Do you believe it has an influence?


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## verce (7 July 2019)

@tech/a do you have nothing better to do than nitpicking everything @Ann says?


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## tech/a (7 July 2019)

Look I’ve made this clear a couple of times
I’ve made it clear in private emails.

Technical analysis gets a bum wrap particularly when it is 
Presented with very little understanding of how to practically apply it.

When I see people who DONT know better commenting on rubbish as
If it’s amazing gospel I’m going to ask the questions that SHOULD be asked
and if your presenting it as a practitioner in the field of T/A you should
Be able to answer it coherently and without taking offence.

Anyone interested in applying T/A in their trading should also be interested in any reply.

After all people use REAL Money to trade 
If your presenting practical application of any form of analysis you have a responsibility in my view to know what your talking about!
So if I don’t get it I’ll ask for clarification and so should anyone else with a question.


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## tech/a (8 July 2019)

tech/a said:


> How does an average of price represented in a line drawn on the chart
> Supply elasticity to a price of a stock.
> Your implying it has some influence in price going forward?
> Do you believe it has an influence?




*The answer is.*
A moving average is simply a line plotted from data
it has no meaning other than a representation of its
data points expressed as a line over X periods in this
Case 21 periods.


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## Ann (14 July 2019)

tech/a said:


> *The answer is.*
> A moving average is simply a line plotted from data
> it has no meaning other than a representation of its
> data points expressed as a line over X periods in this
> Case 21 periods.




Spoken like a true non-chartist. 

I am going to do my best to show you how I chart.

Charting is the art of reading moving averages, indicators and oscillators. These things need to be taken into account plus there is more. We are looking at a youngster here and need to find out what their support lines are.
Even though I am a chartist I like to hear stuff like this from people I respect....


peter2 said:


> Another small company (like ST1) building an alternative to the NBN in selected areas. This will become a very interesting sector if these companies can deliver a higher quality ISP than the NBN.



 and from Greggles here

I try not to let a good story blind my trading, do I? Hell yeah sometimes and do I come to grief? Hell yeah, sometimes! 

However it is worth taking a glance at what they do. There is always a higher power directing their course and you need to know if it is on the rise or the fall.

Looking at the chart I have three MAs showing, one is 21dema the second is 34dema and the third is 55dema.
As this is such a youngster a mere 5 months old I am a lot more forgiving. Sometimes kids run fast and just fall over, concessions need to be made. Little UWL had a fall and bounced off 34dema so I am now going to say 34dema is a test point for UWL. If UWL ever fails 34dema twice, if it closes under 34dema on two consecutive occasions then it is outski for UWL.  I am only saying this as a short term trader, longer term there is a whole different story with far slower MAs.

MAs are a very important part of a chart traders arsenal and are a vital part of trading successfully. There are no magic numbers just spread them out. I have decided on Fibonacci numbers because I think they are caring and beautiful, they reach back and bring the laggards forward. I now, pathetic, I can't help it, I am a caring mum! Also note like any infant's life there are stages. Development stages are very important. I draw the lines from EOD.

One could call them stairways to heaven!


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## explod (17 July 2019)

As a chartist as well as a fundamental follower I'd would have never picked this when you did.  A good explanation may help us to consider when it looks great but as it's shown in my experience it was all wrong.

I'm trying to distil soot (rubbish)


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## tech/a (17 July 2019)

Explod 
It’s hit it’s bottom 
For the time being 
Without an M/A in sight.

But I’m sure one will appear as the saviour!


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## System (25 September 2019)

On September 25th, 2019, Uniti Wireless Limited changed its name to Uniti Group Limited.


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## peter2 (13 December 2019)

I was riding this one higher until UWL decided to raise capital for a purchase. 

*Retail Entitlement offer: *1/10 at 1.62
I can buy a very small parcel at 1.62/s or as many as I like in the market for less. No thanks.

I'm concerned, if the proposed purchase is so good, why did the share price drop below the offer?


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## So_Cynical (14 December 2019)

peter2 said:


> I'm concerned, if the proposed purchase is so good, why did the share price drop below the offer?




The offer wasn't priced correctly? these guys have to pick a number and go with it and sometimes they are a little unrealistic, pricing for glass half full not half empty.


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## Dona Ferentes (16 January 2020)

peter2 said:


> Another small company (like ST1) building an alternative to the NBN in selected areas. This will become a very interesting sector if these companies can deliver a higher quality ISP than the NBN.



As well as Uniti Group Limited (UWL), formerly Uniti Wireless Limited, in this space, we have OptiComm (OPC)







> ... a licensed carrier and wholesale network infrastructure operator which designs, builds, operates and maintains fixed-line access, fibre-based, telco networks servicing new residential, commercial and retail developments within Australia. OptiComm is the fixed-line network infrastructure provider within OptiComm connected estates. OptiComm's network infrastructure comprises the final section (or last mile) of the telecommunication networks connecting homes, apartments and commercial premises within OptiComm connected estates to a central exchange point from which high-speed broadband internet and telephone services are delivered to end user consumers via third party providers of retail internet and other telecommunication services (Retail Service Providers).



and 5G Networks (5GN) 







> ... a telecommunications carrier operating across Australia. The Company is engaged in the supply of cloud-based solutions, managed services and network services. 5G Networks provides the end-to-end control, responsiveness and upload and download speeds necessary to fully capture the value of cloud-based computing systems.



and Spirit Telecom Limited (ST1) 







> ... a tele-communications company which provides Internet, cloud solutions, telephony services and Phone Names in Sydney, Melbourne and Brisbane and the Gold Coast.



- and probably a few others. Remember BigAir, taken over by SuperLoop SLC? Most are above the IPO price, but the price roller-coasters since then would be good for trading? And it looks like a sector 'ripe for consolidation'.


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## Dona Ferentes (23 April 2020)

from a week ago


> - EBITDA and EBITDA run-rate guidance issued in February 2020 reaffirmed
> - Business performance, including March 2020 month-to-date, above forecast
> - Increasing demand for UWL’s high speed domestic fibre broadband services
> - Net cash reserves of more than $34M, as at 20 March 2020
> ...




and for Quarter Ended 31 March 2020


> - 217% increase in like-for-like Net Operating Cash Flow on prior quarter
> - 754% increase in Free Cash Flow on prior quarter
> - Free Cash Flow exceeds 72% of Net Operating Cashflow
> - Annualised run-rate EBITDA as at 31 March 2020 tracking above forecast
> ...




Coming up for one year since IPO. Market didn't quite believe the 'warm and fuzzy' from last week, but up 13% today.


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## Dona Ferentes (15 June 2020)

Dona Ferentes said:


> As well as Uniti Group Limited (UWL), formerly Uniti Wireless Limited, in this space, we have OptiComm (OPC)
> and 5G Networks (5GN)
> and Spirit Telecom Limited (ST1)
> - and probably a few others. Remember BigAir, taken over by SuperLoop SLC?





> ... And it looks like a sector 'ripe for consolidation'.



ACQUISITION OF OPTICOMM by a RECOMMENDED SCHEME OF ARRANGEMENT

CREATION OF A GROWING, LARGE SCALE NATIONAL PRIVATE FIBRE CHALLENGER, with requisite scale, capability and adjacent market opportunities

Strengthened RECURRING FINANCIAL PROFILE with HIGH LEVEL VISIBILITY INTO FUTURE ORGANIC GROWTH with approx 190,000 combined contracted lots.

Immediately EPS accretive pre-synergies and 23% EPS ACCRETIVE including $10 MILLION of estimated RUN-RATE SYNERGIES

Uniti’s acquisition consideration of $532 million funded via a $270 MILLION ENTITLEMENT OFFER, $150 million new debt facilities and 84.0 million Uniti Shares with an implied value of $125 million

Uniti confirms FY20 EARNINGS GUIDANCE UPGRADED


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## Country Lad (15 June 2020)

Well predicted Virgil aka @Dona Ferentes.  No leaking of that transaction.  I held UWL until I sold last Friday when stops said sell.  How was that for bad timing.  No indication in chart or volume or unusual trading.


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## Dona Ferentes (16 June 2020)

Country Lad said:


> Well predicted Virgil aka @Dona Ferentes.  No leaking of that transaction.....  No indication in chart or volume or unusual trading.



and now we know why, young fella. It all happened on the weekend...  From the AFR:

_In a strange twist of fate - and in a good example of how corporate M&A deals can turn on a dime - it was Telstra's move to sell a bunch of fixed broadband assets that sparked Uniti Group's $532 million bid for rival internet play OptiComm. _

_The Telstra assets were dubbed "Project Velocity" and were offered to NBN Co under an agreement between the pair. NBN Co baulked - refusing to pay about $40 million - so Telstra went to some industry players to find a new owner._

_OptiComm, advised by Morgans, emerged from the market soundings in pole position. Its management had the appetite for the assets and the financial firepower, with its shares more than doubling in less than one year on the ASX boards. It is understood OptiComm was willing to pay about $70 million for Telstra's Velocity in a process that wrapped up about one month ago, according to fund managers briefed on the matter. The parties were about to sign a deal when Uniti entered the scene._

_Uniti's voracious dealmakers got wind of Telstra's Velocity, and approached the company asking for a chance to take on OptiComm. Telstra opted to run another round and was calling for binding bids for the assets by June 23 (next week). OptiComm was even told it would need to pay about $50 million more to secure Velocity, and Telstra told both parties it wanted to transact by June 30._

_So OptiComm thought it was in a two horse race for Velocity._

_But it turns out it was a one horse race for OptiComm; the predator was actually the prey. Instead of bidding for Telstra's Velocity, Uniti turned its attention to OptiComm._

_Uniti had come together quickly in the past 12 months, under the watch of ex-M2 Group duo Vaughan Bowen and Michael Simmons. It had snapped up all sorts of telecommunications services assets - everything from internet voice calls, 1300 number owners and a broadband network owners (like OptiComm, but smaller) - and was ready for its big move, dubbed "Project 2020"._

_Sources said Uniti went to some of the shareholders that own both stocks and convinced them of the merit in putting the two together._

_Uniti got the response it was after; and what culminated was a mad weekend as Uniti and OptiComm agreed the $5.20 a share bid, and the acquirer's brokers, Bank of America and Goldman Sachs, helped stitch up the associated equity raising. Street Talk revealed the deal on Sunday._

_The raising flew out the door on Monday. Fund managers reckon it puts two similar businesses together, albeit ones that target different markets and whose customers should not overlap. The question is whether Uniti can hit the $10 million estimated synergies, or perhaps whether it can sit long enough for shareholders to judge the deal longer term._

So, there's now the question, assuming this goes ahead, as to whether UWL can grow the larger business, whether the synergies are real, and etc. I was always worried about UWL's ragtag collection of assets, some growing but some unloved and in delcine, so we may see a real Telstra *fixed broadband *alternative emerge, and that would be good.

And, there's still the original Telstra parcel ('Velocity') sitting there for some upstart to contemplate?


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## Dona Ferentes (18 August 2020)

*Livewire Markets: *Okay. Next stop is Uniti Group. It's just acquired OptiComm for $532 million. It's upgraded its guidance and OptiComm shareholders even got a 10 cent special fully franked dividend. It's all happening. Buy, hold, sell?


> *Tobias Yao (WAM) (Buy): *So Uniti Wireless is a buy. We believe that the large telecommunication companies in Australia are constrained in terms of what they can acquire, due to ACCC concerns. As a result, Uniti Wireless is in the box seat to be the consolidator in the space. We like the acquisition of OptiComm, the contractor dwellings underpins a really strong medium-term outlook. We believe it's very synergistic and Uniti Wireless can continue to enter into other adjacencies. So it's a buy for us.




*Livewire Markets: *Okay. Arden, are you going to show Uniti with Tobias's opinion? Buy, hold, sell?


> *Arden Jennings (Ausbil) (Buy): *I agree. Yeah, definitely agree there. It's a buy, Vishal. It's a high conviction position for us. Management are fantastic. They're very experienced, the XM2 telecommunications management team - the old band is back together. We really liked the acquisition of OptiComm that is expected to close in the next few months. We believe there's significant synergies there on offer. So they've outlined $10 million worth of synergies, but there are potentially double or triple that in the OptiComm business. So I think there's plenty of fat in that $10 million synergy number from a cost perspective. The company combined will have around 185,000 active in connected premises....





> And when you include the pipeline, that takes it closer to 400,000 premises, which is a significant number in the market. With the combined business I think, ASX 200 is a potential inclusion, so that will help with passive buying potentially, post-completion of the merger, as it will have a market cap above a billion dollars. And probably the last point, which is a bit of an added bonus, I think, is I think eventually that they may be acquired potentially by a utility player. I can see that there are revenue synergies to be had with a couple of hundred thousand premises wrapping their telecommunications in with perhaps gas and electricity as well. So not the reason we own it, but a potential added bonus. So it's a buy.


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## Beaches (18 August 2020)

The takeover offer is for 3.4228 Uniti shares for each Opticom share or $5.10 cash or a combination of shares and cash. Opticom is also paying shareholders a special fully franked dividend of 10c.

Uniti (UWL) is currently trading at $1.59 and Opticom is trading at $5.21. For a cheap entry to Unity, buying Opticom would give a discounted entry price of around $1.52 to Uniti. The 10c dividend would bring that down to $1.49.

The takeover of Opticom is by scheme of arrangements which requires approval of shareholders and approval of the Supreme Court. Consequently, the takeover is a somewhat drawn out affair.
Takeover announced - 15 June
First court hearing -  7 August
Shareholder meeting - 11 September
Second court hearing - 18 September
Uniti shares issued and trading around 25 September

If for some reason the takeover did not go ahead, the Opticom shares would drop significantly and the special dividend would be cancelled. However, given that it is a friendly takeover and the management and directors of both companies are recommending the deal, it is unlikely not to proceed.

Opticom shareholders are required to lodge an election notice for shares or cash option by 2 September.


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## Dona Ferentes (18 August 2020)

*Small cap darlings' merger challenge*
https://www.afr.com/companies/telecommunications/small-cap-darlings-merger-challenge-20200812-p55kzk*
*
Basically, the boss of Uniti is an entrepreneur, started out with M2 Comms, then with UWL made a set of acquisitions. OPC has grown organically; this will be Uniti's biggest move, and the enlarged entity should make it to S&P200 inclusion.

They both mainly lay fibre to premises and charge internet providers for access. UWL is new housing estates and low rise developments, while OPC was more high rise and apartments. They were starting to nip at each others' territory. The combined group will have 109,500 active connections, and an additional 78,000 connected premises, and there are another 188,000 contracted lots.

Sounds like a lot of groundwork, getting the synergies, and converting connections to active monthly payers.


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## Dona Ferentes (8 September 2020)

Rival bid for Opticomm received, and that SP has surged.... Uniti has dropped 6%.

I wonder if the serial acquirer will match it? And overpay for what is essentially an infrastructure play?


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## bk1 (8 September 2020)

Conditional offer that is not superior in the view of the Opticomm board, but the UWL share price has taken a hit that's for sure. Last minute bid, dont know what to make of it...


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## Dona Ferentes (8 September 2020)

bk1 said:


> Conditional offer that is not superior in the view of the Opticomm board, but the UWL share price has taken a hit that's for sure. Last minute bid, dont know what to make of it...



its a late lob. 5.85 is superior to 5.20. Board will consider it. (take no action)


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## Dona Ferentes (15 September 2020)

Uniti has now lifted its cash and scrip offer for OptiComm from $5.20 a share to match the Aware (First State) Super cash offer. The revised $4.835 a share *cash plus scrip** bid, to get to $5.85 a share, and match the $600 million offer by First State Super.
_*0.80537 Uniti shares per OptiComm share (which implies $1.015 per OptiComm share calculated on the basis of the closing trading price of Uniti shares on 11 September 2020 of $1.26) _

Also, UWL and its advisers have come up with a crucial action by effectively convincing OptiComm’s institutional investors to throw their weight behind the Uniti offer.  Uniti has grabbed a 6 per cent stake in OptiComm and has a call option over another 13.5 per cent, giving it an effective blocking stake of 19.5 per cent. Given management holds about 40 per cent of OptiComm, it will be hard for Aware to build a similar stake in the business.

Uniti and its advisers believe the super fund won’t launch a hostile bid, so it feels confident that it has struck the vital blow (and market action today bears this out).







> Its new bid clearly took the market by surprise and the group hurting most are the short sellers, who had boosted the proportion of shares in Uniti sold short from 8 per cent to 12 per cent following the Aware offer. They got badly beaten up on Tuesday, with Uniti shares leaping more than 17 per cent today.


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## blofeld (7 October 2020)

So is this still a good time to be buying UWL? The price seems to be holding steady around 1.45 today.


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## bk1 (8 October 2020)

Let the dust settle from the Opticomm acquisition, in my opinion.


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## Dona Ferentes (19 October 2020)

_September 2020 quarter saw another strong performance by Uniti in terms of Net Operating Cash Flow and Free Cash Flow, reflected in growing cash reserves (excluding rights issue proceeds).  This continued operating performance improvement is a direct result of organic growth being delivered across the Uniti Group as a whole, stringent cash disciplines and an ongoing focus on extracting operating efficiencies.  

There have been notable developments in respect of Uniti’s proposed acquisition of OptiComm  during the September quarter (and also during the month of October), due to the competitive situation which has arisen with another prospective acquirer.   Uniti’s most recent ASX announcement on this matter on 15 October 2020 (OptiComm Acquisition – Superior Proposal) provides detail of the current status of this transaction.   

The Board would like to make clear to our fellow shareholders that whilst we remain focused on acquiring OptiComm, in light of it being a highly accretive and strategic acquisition, we remain disciplined and measured, as we have proven in all past acquisitions. Uniti has proven to be able to acquire and integrate quickly and effectively to generate material accretion for shareholders as evidenced by the returns now being delivered to shareholders from the W&I business, where we acquired businesses at greater than 14 times historical EBITDA which are now delivering EBITDA representing a 5.4 times multiple of aggregate acquisition consideration. This has been achieved in less than 12 months_.


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## Dona Ferentes (14 November 2020)

The securities of OptiComm Ltd will be suspended from quotation at the close of trading today, Friday, 13 November 2020, in accordance with Listing Rule 17.2, following lodgement of the Federal Court of Australia orders with the Australian Securities and Investments Commission approving the scheme of arrangement by which Uniti Group Limited will acquire all of the issued shares in OPC.

- _tough luck, Aware Super Fund. No synergies. _


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## Dona Ferentes (17 November 2020)

but wait, there's more

_- Uniti acquires 100% of fast-growing, specialist Retail Service Provider, *Harbour ISP* 
- Harbour ISP specialises in delivery of superfast retail broadband services in ‘greenfield’ developments 
- Preferred broadband RSP with leading Australian greenfield property developers, including Mirvac 
- More than 30,000 retail broadband customers, doubling Uniti’s current retail customer portfolio   
- Purchase consideration of $9.25M + 1M options (at exercise price of $1.54) to acquire UWL shares 
- Forecast earnings contribution, including synergies, of $3M+, a purchase multiple of ~3x EBITDA 
- Consistent with the rationale for Uniti’s Functional Separation Undertaking accepted in October 2020  _
_- Highly strategic & accretive acquisition, enabling greater penetration & revenue expansion on Uniti owned fibre networks, including those added via the OptiComm acquisition _


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## Dona Ferentes (16 December 2020)

bk1 said:


> Let the dust settle from the Opticomm acquisition, in my opinion.



all rather sudden; digested Opticomm with ease, or just another offer too juicy to refuse?







> _*Reasons for trading halt*_: To enable an orderly release of information regarding an *acquisition* and commencement of an associated capital raising via *placement *and offer by way of *share purchase plan *to eligible shareholders.


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## boofhead (16 December 2020)

They have agreed to take Telstra Velocity and South Brisbane FTTP assets.


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## bk1 (17 December 2020)

There's your answer, the institutions agree and an oversubscribed placement helps the share price by 14%...


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## Dona Ferentes (17 December 2020)

bk1 said:


> There's your answer, the institutions agree and an oversubscribed placement helps the share price by 14%...



so, why is Telstra selling it; "Non-core" ??

I saw something, that the Velocity biz was going for 6.7x EBITDA, and UWL is at 16x, so to their way of thinking, lets add to the mix and it will deliver better *Metrics*. But isn't this sort of thing inherently fickle, and outcomes easily bent by supplying only part of the story?


> _Forecast annual EBITDA contribution to Uniti of $ 21M, commencing from early January 2021 and potentially increasing post migration of assets and services
> ~ 13 % EPS accretive and increases FY21 pro forma EBITDA by more than 20% to $116M
> Acquisition funded by mix of debt, underwritten equity placement and share purchase plan
> Uniti net debt to FY21 pro forma EBITDA  ~2.3 times ratio at completion_


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## Dona Ferentes (22 January 2021)

This is a _fund manager's_ view. (forgotten who)


_: What is your most underrated stock at the moment?_

HT: "_I'd probably say Uniti Group Ltd (ASX: UWL), as it is now called. __It is a fibre network provider. Over the last 18 months it transitioned from providing fibre network services to residential, greenfield residential developments to become much more a fibre infrastructure company. It has recently just bought OptiComm Ltd, and also bought the Telstra Corporation Ltd (ASX: TLS) Velocity business. 

"I think COVID has highlighted the importance of digital technology and also fibre connectivity. What we found interesting and one of the observations we have made is that these assets are increasingly being appreciated as social infrastructure assets. The utility type assets, much like toll roads and airports, but I do not think they have been historically thought of in that way. 

"COVID has helped really shift that focus and show that these businesses have strong annuity earnings and, in some ways, aren't as volatile or… impacted by things like economic activity such as passenger movements and car traffic and so forth.

"The one thing that struck us is that during the bid they made for OptiComm, Aware Super, which is the old First State Super, made a rival bid. In our mind, this reinforces the point that these assets are starting to be viewed in a different light, [as] the social infrastructure type assets.

"Our view is that Unity is now the number 2 player in what is essentially a duopoly market with NBN. And *they are the only player that has got the ability to sell in the wholesale and retail channels,* through having recently won structural separation approval from the ACCC. __It is a business that… has probably emerged stronger from COVID to become really what we think will be a social or a fibre infrastructure business going forward._ " 

(hard to price that, though)
there has been some enthusiasm on recent news, of late. ....then consolidation. Will it hold above $1.80?
_... 6 month, daily chart_





DNH


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## peter2 (24 January 2021)

I don't think a six month chart shows the growth history nor potential of UWL.  UWL listed back in early 2019 so it's quite new. This chart shows all of it's listed price history. Immediately after listing UWL increased tenfold. Spectacular. After such a fast rally we'd expect some consolidation and a corrective move. The consolidation was shallow with few sellers until the Covid market selloff (Feb 2020). Since then UWL has transformed it's business by buying LBNCo, Opticom and the TLS Velocity (Bris) businesses. This activity along with the capital raisings have kept potential investors uncertain on the future prospects of UWL. Have they paid too much? Can they amalgamate the new businesses seamlessly to form a new company? 

Last week's price breakout of the all time high indicates that the future prospects for UWL look promising. A chartist's price projection based on the pattern low indicates a future price target of 2.80 (1.80 + 1.80-0.80).


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## Dona Ferentes (27 January 2021)

peter2 said:


> Last week's price breakout of the all time high indicates that the future prospects for UWL look promising.



the growth is there
_
- Record Net Operating Cash Flow of $16.1M, up 53% on prior quarter (Q1-FY21) 
- 544% increase in Net Operating Cash Flow vs prior corresponding period (Q2-FY20) 
- Record Free Cash Flow in Q2 of $11.3M, up 64% on prior quarter (Q1-FY21) 
- Free Cash Flow represents 70% of Net Operating Cashflow, after all capex 
- Key financial performance metrics for first half of FY21 above forecast levels 
- Materially above-forecast growth in net new FTTP activations in the quarter_


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## Dona Ferentes (29 May 2021)

*Ally Selby (LiveWire Markets): *First up, we have Uniti Group. They’ve made numerous acquisitions over the past 12 months and its share price is up around 95 per cent over the same time period. Chris, it’s one of your top holdings. Take us through your reasoning behind it.

*Chris Stott (1851 Capital):* We’re quite attracted to the management team – Michael Simmons, Vaughan Bowen – who have been there and done that before – some of the best performing telco entrepreneurs in the last 10 years. Really strong balance sheet, ASX 200 inclusion coming, we think, over the next few weeks. So, it’s a *buy *for us over the medium-to-longer term.

*Ally Selby (LiveWire Markets):* Marcus, do you think it’s a buy, hold, or sell?

*Marcus Burns (Spheria):* Look, I’m going to take the other side of that and say it’s a *sell*. The key thing for us is we see some risks around the balance sheet. They have done a lot of acquisitions to Chris’ point, but it’s carrying a tonne of goodwill and we think there’s some long-term potential margin risk.


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## Dona Ferentes (22 June 2021)

Any insights as to why Uniti appears to be the best of the 'second tier' telco ICT sector would be appreciated.


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## Beaches (23 June 2021)

Dona Ferentes said:


> Any insights as to why Uniti appears to be the best of the 'second tier' telco ICT sector would be appreciated.




I think the market took that as a challenge. Up another 3.5% on a down day for the XJO.
.


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## Dona Ferentes (23 June 2021)

My feeling is that sector allocation in telco / ICT is moving around, now Vocus Group’s life on the ASX has only a few days to go after shareholders approved the $3.5 billion buyout. It is a possibility that money is following the entrepreneurs, and UWL pathway is similar to the previous decade's of acquisition and consolidation as small players aimed for mid-tier.


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## bk1 (23 June 2021)

I feel its more of a consequence of changes in the communications industry, specifically, Telstra rationalising parts or silos of their business, NBN being dragged from a monopoly on fibre services.
I think there is room for agile, nimble providers of  fibre, 5g and SaaS.
But whatever your view, the market obviously likes the story of acquisition and management.
Up 3.5% on a quiet day on the ASX...

I hold UWL, OTW...


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## bk1 (24 August 2021)

FY21 results out, shareprice rising by 6% on the results.
W & I leading the way with excellent margins, the M &  A  activity if the past two years seems to have paid off.
Now generating a lot of cash flow...


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## tech/a (24 August 2021)

Held this in my Long term portfolio for ages.


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## Dona Ferentes (24 August 2021)

Uniti reported $64.2 million of free cash flow with its full year   results, and will consider paying dividends in future  periods. 

Revenue nearly tripled to $160.5 million. Net profit almost doubled to $29.2 million.

CEO Mick  Simmons described the second half as a "_clean six months"_ as it had not  made any acquisitions during the period, and told investors M&A activity was unlikely for the time being.

He  said Uniti had weathered the toll from COVID19 outbreaks in Sydney and  Melbourne but warned any slowdown in construction activity,  critical for the company as it lays down fibre to new property developments,   would probably not eventuate until later in the calendar year.

The company recorded a 15 per cent increase in active, connected or in   construction premises to take its total to 500,000 in the second half of  the 2021 financial year. When the migration of customers from its   buyout of Telstra Velocity is finished, this will stretch to over   565,000.


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## bk1 (14 September 2021)

Trading Halt just before close of the market this afternoon. Somebody got wind of it, 14 million volume, thats only happened a couple of times in the recent past.


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## Dona Ferentes (14 September 2021)

bk1 said:


> Trading Halt just before close of the market this afternoon.



Reasons for trading halt: _To enable an orderly release of information regarding an announcement regarding a member of the executive team in response to media activity. _


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## Dona Ferentes (15 September 2021)

Dona Ferentes said:


> Reasons for trading halt: _To enable an orderly release of information regarding an announcement regarding a member of the executive team in response to media activity. _



_apples and trees_?  _Mandy R-D _?...

UWL notes media reports earlier today regarding allegations having been made against one of its directors, Mr Vaughan Bowen, by ASIC in relation to the personal trading of shares in Vocus Group Limited in June 2019. 


> _The Company understands that Mr Bowen emphatically denies the allegations and will be vigorously defending the matter.  The Company also notes that this matter does not relate to trading in UWL shares. _





> _The operations of Uniti Group will not be impacted. The Company’s business, and executive team, will continue as normal under the leadership of MD & CEO Michael Simmons.  The UWL Board does not intend to make any changes to Mr Bowen’s role and position of Executive Director (M&A) of the Company, which will continue, until the outcome of this matter has been determined.   _


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## Dona Ferentes (25 January 2022)

UWL proposes to _undertake an on-market share buyback subject to prevailing share price, market conditions and alternate uses of capital. 

In the interests of ensuring that the market is fully informed prior to commencing the share buyback, the Company notes it has *received approaches* from more than one party indicating potential interest in an acquisition of the Company, which as of this time, do not include detail as to timing, price or conditions. Therefore, the Company notes that there is no guarantee that such approaches will result in any substantive proposal(s) emerging._

That was yesterday. SP ran from $3.75 to $4.20 but has slipped back. Was higher a month or so ago.


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## Miner (22 February 2022)

NICE Number now 12.13% reduction to cool down hot potato


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## Dona Ferentes (15 March 2022)

up 15% very early trade this morning, then the belated response


15/03/202210:14 am AEDT                                   Pause in Trading


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## Miner (15 March 2022)

Dona Ferentes said:


> up 15% very early trade this morning, then the belated response
> 
> 
> 15/03/202210:14 am AEDT                                   Pause in Trading



My procrastination to get rid off UWL yesterday has helped to wait and watch post trading halt. 🙃


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## Dona Ferentes (15 March 2022)

Miner said:


> My procrastination to get rid off UWL yesterday has helped to wait and watch post trading halt.



and here's the story (from the AFR)

Infrastructure investor Morrison & Co is the suitor stalking Australian telecommunication services and fibre owner Uniti Group.

_Street Talk _understands Morrison’s team has been running due diligence on the business, seeking to firm up an offer valuing the company at about $3.1 billion on an equity value basis. 

Morrison & Co’s interest is said to be advanced, and comes after Uniti Group flagged in January that it had received approaches from more than one party indicating potential interest in acquiring the company.


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## Dona Ferentes (15 March 2022)

Miner said:


> My procrastination to get rid off UWL yesterday has helped to wait and watch post trading halt. 🙃



might be worth hanging on until the last encore



> _It is not known whether Morrison’s dealmakers are looking on behalf of the dual-listed Infratil, one of its unlisted funds or third-party clients, such as Future Fund or Commonwealth Superannuation Corp_


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## Miner (15 March 2022)

Dona Ferentes said:


> might be worth hanging on until the last encore



Definitely a big yes if rumours are true as reported in media. But it will be a big thud, should UWL come out with saw nothing and did nothing story (hope not). I will be blaming my procrastination again


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## Dona Ferentes (15 March 2022)

smoke; fire



> _Uniti confirms it has entered into exclusive discussions with HRL Morrison & Co. on behalf of its managed funds and clients. However, these discussions are non-binding, preliminary, highly conditional and uncertain as to an outcome. The full terms of the exclusivity deed are annexed to this announcement. The latest date that the exclusivity period will end is 22 April 2022.  _





> _Further, Uniti confirms that the non-binding, conditional Indicative Proposal is for an indicative price of* $4.50 c*ash per share, fully diluted, which is within the value range mentioned in the media speculation.  _



.......... back trading at 3:45pm, opened at $4.10 and closed at $4.01.

_Not much conviction there. _


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## Dona Ferentes (23 March 2022)

Miner said:


> Definitely a big yes if rumours are true as reported in media. But it will be a big thud, should UWL come out with saw nothing and did nothing story (hope not). I will be blaming my procrastination again



Hope you procrastinated (further)

_Macquarie Asset Management and PSP Investments have made a $5 a share bid for Uniti Group. __Sources said the pair have lobbed a non-binding and indicative bid, similar in structure to the offer from rival suitor Morrison & Co. 

Macquarie Asset Management, the infrastructure investment arm formerly called Macquarie Infrastructure and Real Assets, and Canadian pension fund PSP are working together on the bid._


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## bk1 (23 March 2022)

I'm not saying that Macquarie will be successful but i would of thought they would be a very likely bidder to my mind.
Shareholders looking for above a $5 bid perhaps...


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## Miner (24 March 2022)

Dona Ferentes said:


> Hope you procrastinated (further)
> 
> _Macquarie Asset Management and PSP Investments have made a $5 a share bid for Uniti Group. __Sources said the pair have lobbed a non-binding and indicative bid, similar in structure to the offer from rival suitor Morrison & Co.
> 
> Macquarie Asset Management, the infrastructure investment arm formerly called Macquarie Infrastructure and Real Assets, and Canadian pension fund PSP are working together on the bid._



Unfortunately I did not procrastinate any further when the share price jumped up too much . But not regretting because I did not have another crystal ball to know what Macquarie will do next day


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## System (8 August 2022)

On August 5th, 2022, Uniti Group Limited (UWL) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between UWL and its shareholders in connection with the acquisition of all the issued capital in UWL by MBC BidCo Pty Ltd, an entity wholly owned by a consortium comprising The Morrison & Co Infrastructure Partnership, Commonwealth Superannuation Corporation and BIF IV One Holdings LP (a special purpose limited partnership managed by Brookfield).


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