# SLC - Superloop Limited



## System (10 May 2015)

Superloop has been established to invest in telecommunications infrastructure, with the aim of becoming a leading independent provider of connectivity services in the Asia Pacific region. Specifically, Superloop's initial focus will be to invest in fibre optic telecommunications infrastructure between locations of high interconnection density (e.g. data centres and submarine cable landing stations) within Australia and Singapore.

It is anticipated that SLC will list on the ASX during June 2015.

http://www.superloop.com


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## VSntchr (11 May 2015)

System said:


> Superloop has been established to invest in telecommunications infrastructure, with the aim of becoming a leading independent provider of connectivity services in the Asia Pacific region. Specifically, Superloop's initial focus will be to invest in fibre optic telecommunications infrastructure between locations of high interconnection density (e.g. data centres and submarine cable landing stations) within Australia and Singapore.
> 
> It is anticipated that SLC will list on the ASX during June 2015.
> 
> http://www.superloop.com




A listed competitor for VOC (and TPG to an extent)...
I have had a read through the prospectus and this is very early stage, with no financial forecasts provided. 
It will be interesting to see what their plan is for the Australian network. Is it their just to gain credibility with the investment community? I get the impression that the Singapore duct network is where the founder is excited about. On to the watchlist it goes!


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## omac (13 May 2015)

Looks interesting, Malone and Slattery involved. It does say they dont have any plans for Oz at the moment, mostly overseas focussed (investigating hong kong). 
what is the advantage of the superloop over current fibre installations? 
Are they just going to compete on price or is there a genuine advantage to their design? 
What kind of scale do they need to be profitable? VOC was not profitable at similar cable kms installed from memory, I suppose the higher density locations will help in that regard.

I will watch, but I have very little idea of what the asian fibre markets are like.


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## greggles (28 March 2019)

SLC has just successfully completed a fully underwritten ~$30.87 million equity raising via a placement to institutional investors and a non-renounceable retail entitlement offer.

Superloop owns and operates over 640 km of carrier-grade metropolitan fibre networks in Australia, Singapore and Hong Kong, connecting more than 275 of the region's key data centres and commercial buildings.

It effectively halved in price in the five months between August 2018 and January 2019 but there are now signs that it may have bottomed out at $1.30. It first hit $1.30 in late January and quickly bounced back off it, before touching it again in mid-March and again bouncing back off it. It looks to me like a classic double bottom formation.

SLC now looks to be forming a low-key uptrend as it battles its way back to $1.50.


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## Iggy_Pop (26 December 2019)

Superloop is an independent provider of connectivity services designing, constructing and operating networks throughout the Asia Pacific metro region. SLC invests in fibre optic telecommunications infrastructure between locations of high interconnection density within markets experiencing significant growth in interconnectivity. The company owns and operates over 670kms of carrier-grade metropolitan fibre networks in Australia, Singapore and Hong Kong, connecting more than 310 of the region's key data centres and bandwidth-intensive buildings.

From the 2019 Annual Meeting
Company Highlights Founded in 2014 to connect Asia Pacific to the cloud, with a legacy-free network capable of fulfilling the growth in demand for bandwidth Invested $256m in advanced fibre networks connecting bandwidth-intensive properties across Asia Pacific, on average 2 years into 20+ year useful life 
Superloop also distributes connectivity within campuses smartly and securely, leveraging $210m of investments in adjacent platforms through acquisitions Core fibre connectivity
(1) revenues up 89% year-on-year (YoY), with sales ramp up now core Asia Pacific loop is live and connected FY19 EBITDA of $8.5m; FY20 $14m-$16m guidance, with stronger H2 performance, excluding other one-off transactions that may occur 
With core network now in place, the marginal incremental investment required to win new customers represents the majority of the future capital needs of Superloop
(2) Capital structure reset with $92m equity raise & renegotiation of 4 year banking facility with senior lenders, with covenants reflecting infrastructure business model

One of my picks for 2020

Iggy


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## Dona Ferentes (4 January 2020)

finding it hard to work out why SLC is  struggling (as it has for quite a while). In May '19, a QIC offer at $1.95 didn't proceed and/ as it as thought Bevin Slattery was looking for a rival offer in the 2's. It came to naught, the SP never got near the offer price. In fact since listing 5 years ago, it ran to $3 in late 2016 but has been drifting S ever since.   In September, a Capital Raise at 82c, some 35% of SLCs capitalisation, was fully underwritten. A two-tranche placement to institutional investors to raise approximately $55million ; and  1 for 6 accelerated non-renounceable entitlement offer to raise approximately $35 million .

_- essentially a recapitalisation; as stated, the CR was going to paying back senior debt.
- SLC states the core infrastructure is now in place, and incremental further investment will be coming from customer growth._

This seems to have stabilised the share price in the last 3 months but has not held $1 with any conviction. I think what has spooked investors has been the pretty constant calls on capital, and just not getting the revenue.

A couple of points (+ve and -ve)
- I noticed Bevin Slattery committed to SLC, even at the expense of not participating in MegaPort MP1 corporate events (to his detriment, with MP1 firing and having risen from $2 to $10+ in the last 30 months, even while going to the market along the way)
- the INDIGO cable on budget and running; partners AARNet, Google, Indosat Ooredoo, Singtel, SubPartners (SLC) and Telstra announced in May that the INDIGO subsea cable system was ready to be deployed by consortium members, following the on-schedule completion of the INDIGO West (4,600km Singapore to Perth) and INDIGO Central (4,600km Perth to Sydney cables. Featuring new spectrum-sharing technology, each consortium member can independently leverage the new cable system to upgrade their networks and enable capacity increases on demand.
- by its very nature, choke points exist between countries where terrestrial infrastructure can't be added; submarine cabling is expensive but can deliver large amounts of data when laid.
- not sure with their Hong Kong network; is it impacted by recent political troubles? Probably.
- and the whole NBN issue must bring pricing pressure to each and all participants and competitors.
- and just as an aside, now this infrastructure is in place to_ "further leverage Superloop's technology platforms for bandwidth-intensive in-building and on-campus demands in Australia, Singapore and Hong Kong", _would I invest in student housing for Asian students?
- Australia’s Academic and Research Network (AARNet) is owned by the Uni's and CSIRO, and this network connects over two million users—researchers, faculty, staff and students—at institutions across Australia to the commercial Internet, to their peers nationally and globally,..


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## Dona Ferentes (18 February 2020)

Dona Ferentes said:


> _- SLC states the core infrastructure is now in place, and incremental further investment will be coming from customer growth._
> 
> This seems to have stabilised the share price in the last 3 months but has not held $1 with any conviction. I think what has spooked investors has been the pretty constant calls on capital, and just not getting the revenue...



"deferred future revenues from coronavirus, given HK and Singapore ativities." - so, a bit of a falling knife, really.


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## galumay (18 February 2020)

Good analysis mate, I haven't ever dived into it far, but it looks like a business that has spent a huge amount of capital building something, and hoping that in the long term the ROIC ends up being higher than the CoC, not sure how that bet will play out.


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## peter2 (18 February 2020)

In view of the falling share price I wonder if SLC is an attractive takeover proposition. 

In May19 QIC group made an offer at 1.90/share (then 1.46). The current price is 0.75.


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## Dona Ferentes (18 February 2020)

peter2 said:


> In view of the falling share price I wonder if SLC is an attractive takeover proposition...



good point; it's infrastructure. Built and in place.

(pity about that darn NBN hollowing out the sector's profitability; anywhere else in a world, where data and the networks tying things together has a growth trajectory to die for, it would be a more rational <less irrational> proposition)


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## peter2 (24 February 2020)

Price bounced quickly off the lows. One to watch.


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## Dona Ferentes (24 February 2020)

peter2 said:


> Price bounced quickly off the lows. One to watch.



Coming straight after results announced, I usually interpret such a move as a large holder (usually insto or fund manager) making a decision to quit (or go below 5%) and instructions go out. But it's often hard to buy in that selling pressure is great (until it isn't, whence the rebound). Because the falling knife may have a way to go.

with small caps, it's either conviction or move on.


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## Dona Ferentes (3 April 2020)

Some reassuring words from Slattery has seen SLC lift 20% .... no longer bargain basement stuff.

Reaffirmed guidance, because there's more traffic on the IP Backbone and International Networks, offsetting the drop in Guest WiFi and Student Accommodation (old BigAir).

Taking out costs in a deliberate and proactive way has met with a tick from financiers. SLC still think positive operating cash flow is attainable; no timeline given, though. Next update, mid May.


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## Bazzi (1 May 2020)

SLC is my pick for the month of May as it is continuing to trend up even when the market dips it is solid and waiting for a breakout to the same trend direction. 
Thanks @Joe Blow


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## Dona Ferentes (11 May 2020)

Bazzi said:


> SLC is my pick for the month of May as it is continuing to trend up even when the market dips it is solid and waiting for a breakout to the same trend direction.



SLC doing all the right things, especially over the last few days
*Renaissance Smaller Companies P/L *has been doing a bit of buying then selling.
Since 21/2 acquired 2.27mill shares, average price 81c
And by 8/5 has sold 3.78mill shares, average price 82c.
- no longer a substantial holder as it's below the 5% mark.
(_then, often, the selling stops; and whoo, SLC has put on 15% to close near $1.00 today)_


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## Dona Ferentes (18 May 2020)

one beneficiary of changing work patterns 







> Over the last few months, the increased demand on our Internet / IP network has been significant, largely driven by the changing traffic profile and volume due to work from home patterns and an increase in video conferencing / streaming services.  Superloop has experienced _*over 30% growth in traffic across our global network within a matter of weeks*_.





> This increase in customer demand has almost entirely been delivered on our existing domestic and international assets. The Company still enjoys significant spare capacity on most international routes, meaning there is further opportunity to continue to grow this business segment, without significant increase to operating or capital costs.



... "the Company has already been placed into an *operating cashflow positive *position and continues to operate well within the debt facility headroom. In our most recent update (18 February 2020), EBITDA guidance provided was a range of $12m — $15m, reflecting anticipated downside risk relating to COVID-19. Despite challenging market conditions, the Company continues to track towards the midpoint of guidance."


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## Dona Ferentes (12 August 2020)

The incumbent CEO will be dialing it back and going to the Board. New guy appointed has come out of NBN and TLS. Hope he's nimble:


> _With the unstoppable rise of the cloud, software defined wide area networking (SDWAN) and of course the NBN, the business market is experiencing a once in a generation disruption that Superloop is uniquely positioned to take advantage of. For the first time, the internet has enabled all businesses from the smallest to the largest to access the productivity improvements that enterprise grade applications enable ... Superloop is set to be a strong catalyst of this change_.


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## peter2 (16 August 2020)

The SLC weekly chart looks interesting once again. 
I've lots of info in the chart so lets take it one pane at a time. 
_Top pane:_ Shows the relative strength of SLC against a benchmark index. It's been green for a few months indicating that the price of SLC has been going up faster than the index. Nice.
_Middle price pane:_ Price is now back at the resistance level (~1.21) after rallying with the market off the COVID low. The sideways (shallow) trading range interests me, BUT, the sloping resistance line reminds me that SLC has been in a longer term down trend for years. If price can break both lines and stay above them, that would be very positive for higher prices. Price has been trading just below the R line and the supply must run out soon (= higher price BO). 
_Lower volume pane_: Ignore all the squiggly lines. I like that last week's volume was above average.






Let's not forget that old take over offer at 1.90. I don't know why they wouldn't have bought SLC on market at 1/3 the price one year later. Perhaps that company is not going as well as it was.


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## Country Lad (17 August 2020)

peter2 said:


> The SLC weekly chart looks interesting once again.



Daily looks OK as well with a break confirmed so far today.


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## Miner (24 August 2020)

I was hoping some commentary would be posted after SLC's probably less than average result.
https://www.asx.com.au/asxpdf/20200824/pdf/44lsxt33r94nv1.pdf investor presentation
https://www.asx.com.au/asxpdf/20200812/pdf/44lf1wg29s5j2r.pdf - new CEO ex NBN - does it inspire any one after so much of poor result and cost increase  on NBN rool out.
DNH (call me negative or optimistic - put a buy order at 90 cents)


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## Miner (24 August 2020)

I was hoping some commentary would be posted after SLC's probably less than average result.
https://www.asx.com.au/asxpdf/20200824/pdf/44lsxt33r94nv1.pdf investor presentation
https://www.asx.com.au/asxpdf/20200812/pdf/44lf1wg29s5j2r.pdf - new CEO ex NBN - does it inspire any one after so much of poor result and cost increase  on NBN rool out.
DNH


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## Dona Ferentes (25 August 2020)

Yes, suddenly Asia Pacific has an _extraordinary new network waiting to be discovered_. It is good the focus is on the hubs, the major Aust cities plus Singapore and HK, with linking subsea cables, but a small fish in a big pond (and HK carries a question mark, verging on problematic). Pleasing growth in what is now their core biz has been offset by slowness elsewhere. Covid hasn't helped But at least the business is getting less cluttered and focusing on the higher margin bits. 

_*Core Fibre Connectivity*: +28% growth in gross margin as business continues to focus on building recurring revenue through increased utilisation of network assets._
_*Fixed Wireless Connectivity: *+$2.0m gross margin with lower COGS (incl. AASB16 impact of rooftop leases $3.7m) offset by decline driven by lower procurement revenue and customer churn $1.7m._
_*Subsea & Construction*: Prior year included $8.4m margin from one-off development and design & construction. _
_*Guest WiFi:* Fewer installs and COVID-19 impact in APAC, coupled with Dec 18 sale of non-core US/UK WiFi customer base._
_*Home Broadband: *Strong margin growth now customers are ‘on-net’, with 64% subscriber growth since Jul 2019._
_*Services inc. CMS & Cybersecurity*: Retirement of non-core cloud managed services offset by growth in CyberHound security._

Still like the story, its infrastructure and may be taken over. Future growth may need to be funded?
  (I hold but sold some 60% yesterday.... kept my top-up acquired at 78c in March but sold and took a capital loss on the rest - can offset against gains elsewhere)


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## Dona Ferentes (1 September 2020)

A new deep technology start up that uses telecommunication fibre optic cables to detect vibrations is emerging from so-called "stealth mode" with a suite of big-name enterprise clients and millions of dollars in investment under its belt.FiberSense, started by former sonar research scientist Dr Mark Englund in 2015, created and patented a new wide area sensor system for recording, labelling and visualising objects and events in real-time called VIDAR (vibration detection and ranging).

VIDAR is capable of capturing and analysing the tiny vibrations of nearby objects, such as cars, drills or even pedestrians, across large geographical grids using fibre optic cables. The vibration readings are then analysed and categorised on FiberSense's digital platform SuperSoniQ, which it provides to clients as a subscription cloud based service.

Just like your ears, SuperSoniQ is able to use vibrations to detect and recognise objects and events in real time over wide areas, but it can not see faces or things. It also cannot hear voices.

The technology, Dr Englund said, will transform the way critical infrastructure assets such as power grids, telecommunication cables and sewerage pipes are managed, as well as be used to help enable autonomous vehicles.


> _If you can access the fibre in the city grids - think of it like a street map - we could detect and then classify what we are seeing across the whole footprint of the CBD in real time. We already own fibre first and foremost, then we have fibre partners and then we have clients in asset protection that provide us the fibre in their assets. We can go to a telco whose pipes have been relegated to limping, impaired assets ... and show them they can take those fibre cables and they're no longer just dumb pipes, but they can be used as a source for real time, relevant data for the operation of cities_.



The first focus has been asset protection and it has 10 enterprise clients paying thousands of dollars a month signed up across the Asia Pacific region, including *Superloop*, Transgrid, Basslink and submarine cable operators Southern Cross Cable Networks.

Unlike internet of things businesses offering a similar service, no specialised equipment such as sensors is needed. Customers use the SuperSoniQ platform to gain real-time intelligence on any event that could damage their assets.....
https://www.afr.com/technology/rich...-play-could-be-bigger-than-5g-20200827-p55pz8


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## Dona Ferentes (1 September 2020)

the AFR article ....
https://www.afr.com/technology/rich...-play-could-be-bigger-than-5g-20200827-p55pz8
... spells out the  involvement of Bevan Slattery, sometimes described as a serial entrepreneur (NextDC, Pipe Networks, Megaport, SuperLoop, etc).


> _*Rich Lister's latest tech play could be bigger than 5G*_
> 
> A new Bevan Slattery backed deep technology start up SuperSoniQ, whose creator, Dr Mark Englund, became connected to Mr Slattery.. while working with a submarine cable manufacturer in the US. Having provided angel funding for FiberSense, Mr Slattery is now also the company's chairman.





> _When I first saw this, I knew it was special, but as we have seen improvements in AI, DSP [digital signal processing] capabilities of advanced GPU [graphics processing unit] and cloud, this whole FiberSense capability envelope keeps lifting to another level, Mr Slattery said. *I genuinely don't think I'm exaggerating when I say this is simply the most exciting technology to ever come out of Australia*. This will be bigger than 5G, in fact, I'm starting to wonder if this could become as big as the cloud_.


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## peter2 (19 November 2020)

SLC's annual results in the mid range of guidance. New focus on growing customers. Now that they've built it, will they come? 
My chart shows a reversal setup of this weekly HL. That four year down trend is going to offer some resistance. SLC remains a takeover target.


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## Dona Ferentes (20 November 2020)

peter2 said:


> SLC's annual results in the mid range of guidance. New focus on growing customers. Now that they've built it, will they come?
> 
> SLC remains a takeover target.



there was what I thought to be a general and ambiguous comment on slide 8 wrt _*Growth in Home Broadband*_


> “Superloop aspires to achieve a step change to market share by June 2021..."



which can realistically be achieved by corporate action rather than internal growth ("_$3mill in new growth initiatives driving the accelerated monetisation of existing assets_"). And so many player out there, attracted by the new NBN pricing.


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## Dona Ferentes (1 December 2020)

back above where I entered (8/09) Finally. 

I was nervous about topping up in the sub 90c because one of the key assets is HK ... and I think in terms of business activity, let alone the political risk of Hong Kong, there continues to be an element of worry. (_Not one for the SL brigade, though)_


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## Dona Ferentes (14 January 2021)

Still only bouncing around the $1.00 mark.  Nice to see Mirrabooka add some commentary in their Half Yearly, Portfolio Changes, as they took on a holding ; acquisition cost $3,729,000.







> _We have also followed progress at Superloop (fibre telecommunications provider) and saw an opportunity to invest with the arrival of a well credentialed management team which has a focus on extracting greater returns from a valuable asset base._


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## Dona Ferentes (22 February 2021)

Superloop has been awarded a major, multi-year contract with Symbio (MNF Group Limited) (ASX:MNF) to become its exclusive supplier of wholesale nbn aggregation services. The contract, signed today, has an expected value in excess of $25m and is Superloop’s largest single contract win to date. 

Under the contract, Symbio will migrate its existing and future supply arrangements from various providers of nbn aggregation services onto the Superloop Connect platform. The contract also anticipates Superloop expanding its existing use of Symbio’s range of voice offerings and including elements within its own portfolio of offerings.


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## peter2 (22 February 2021)

Good to see. I'll take the opportunity and use the news to exit my position that has gone nowhere for quite some time. 

The price chart is slowly building a bullish look. A break-out above 1.08 would start the move to the main resistance level at 1.25. This level tops a two year base pattern.


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## Dona Ferentes (7 June 2021)

In Trading Halt, for _*material acquisition and a capital raising*_ by Superloop

_interesting; I saw them more as a Target_


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## Dona Ferentes (8 June 2021)

_Superloop to acquire Exetel Pty Ltd, Australia's largest independent_* internet service provider, for A$110 million, *_comprising A$100 million in cash consideration and A$10 million in Superloop shares._
_ The acquisition accelerates the utilisation of Superloop's infrastructure assets via acquisition of Exetel’s 110,000+ consumer and business customers. _
_ Estimated cost synergies of ~A$5 million per annum, related to the increased Superloop network utilisation, with all synergies expected to be realised within the first 12 months. _
_ Transaction represents an implied FY21 EV / FY21 Forecast EBITDA multiple of 10.0x (before synergies) and 6.9x (post-synergies) on an FY21 pro-forma basis. _
_ Transaction is materially accretive to key financial metrics including EPS, EBITDA and FCF on a FY21 pro-forma basis.  Acquisition is to be primarily funded by a fully underwritten institutional placement of  ~A$49 million and a pro-rata accelerated non-renounceable entitlement offer of ~A$51 million to raise gross proceeds of ~A$100 million. _
_ Superloop confirms FY21 EBITDA guidance at a tightened range of A$18 million –  A$18.5 million (excluding one-off transaction costs), within the previously stated guidance range._
Entitlement at 1 for 6.67 at 93c, top up facility available


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## Dona Ferentes (24 June 2021)

Dona Ferentes said:


> _Entitlement at 1 for 6.67 at 93c, top up facility available_



The entitlement issue is still open, and will be until Tues 29 June.  With BPay, the ability to delay until the last minute has some attraction, especially as SLC has traded below that level, on Tuesday (down to 90.0c) and today (hitting 90.5c).

It is frequently the case that during the time of the raise, trading will weaken and sometimes get below. Then the response must be; is this selling because the offer is a dud, or just the usual conniptions, of market and of the stock.

Anyway, I decided to buy a parcel on market today at 90.5c, for approx what I could in the offer. I don't think I will add to it before or on 29/06  (though still have that option to top up)


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## Dona Ferentes (2 July 2021)

Retail Entitlement Offer closed on  29 June 2021, raising ~A$21.2 million. Approximately 22.8 million New Shares will be issued under the Retail Entitlement Offer on 06 July 2021. 

_Eligible retail shareholders applied for ~A$6.3 million in New Shares (including applications under the top-up facility). There was a shortfall of approximately 16.0 million New Shares (~A$14.9 million) between the number of New Shares subscribed for by eligible retail shareholders and the number of New Shares offered under the Retail Entitlement Offer, which have been allocated to sub-underwriters of the Retail Entitlement Offer in accordance with the terms of sub-underwriting agreements_.

low participation by retail of around 30%.


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## Dona Ferentes (24 August 2021)

It's been hard for SLC to get away from that 93c level the entitlement was priced at.  There's been a bit of buying to get to 97c recently but today's FY saw it ease back.

*Highlights*:  
●_ Achieved  EBITDA of $18.2 million excluding acquisition costs ($13.5 million in FY20) and $110.7million of  total Group revenues  ($107.6 million in FY20).     _
_● Underlying  revenue    growth   of   14%,   with   underlying   EBITDA    more   than   doubling   at   108%.      
● Core   ﬁbre  connectivity   revenues   (excluding   design   &   construction   revenue)   up   22%  year on year   to   $46.0   million.     _
_● Continued strong   ﬁbre   connectivity   recurring   revenue   sales   trajectory,   with   27%   yoy    growth.      
● Consumer Home   Broadband   subscriber   growth   of   62%   year on year.      
● Operating expense   reduced   17%   yoy,   capital   expenditure   stable   at   $14.6m (excluding leases & IRUs).      
● Enhanced balance sheet strength, with the Group* achieving Free Cash Flow breakeven* for the  year. _



> _"The Superloop networks  are  strategically positioned  to capitalise  on  market  dynamics,  driven  by  strong data growth,  growth in  data centre demand and the need  for   connectivity  services  with  a  focus  on  the Asia Paciﬁc  region. _





> _"Network  coverage  across  the  Asia  Paciﬁc  region, combined  with  the   INDIGO  subsea  cable  system, along with a standardised  and  scalable suite  of    connectivity  solutions including  broadband and cybersecurity,  provide  trusted  and  reliable  services  to a broad range of customer   segments.  _





> _"The  Group  is  focused  on  monetising  these  assets and  increasing   utilisation to deliver a return on investment  to  shareholders. The Group will  continue  to invest  in connectivity  solutions  in  markets  where  the  Board  and  Management  believe the  demand  for   services  will  deliver  an  attractive  return   for  Shareholders_."




- and I notice both ARG and MIR have taken positions in SLC, probably noticing the improving balance sheet.


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## Dona Ferentes (9 September 2021)

Superloop announces the retirement of current Chair Bevan Slattery from the Board, at the conclusion of the forthcoming AGM.
Bevan Slattery said, 


> "I'_m delighted that Peter [O'Connell] has agreed to join the Superloop Board and to take over as Chair. Peter is an entrepreneur in his own right, co-founding Amaysim, and has deep experience in branding, marketing, legal, regulatory, corporate governance and culture over his 30 years in our industry._





> _“Having the opportunity to pick when and how you take a step back from a business you founded is always an important decision. As with previous listed companies, I don’t think I’ve been more sure than I am now.  Since stepping in as Chair from the beginning of the pandemic in March last year, we have removed signiﬁcant cost from the business, put in place a ﬁrst class management team led by our new CEO Paul Tyler, recapitalised the business, delivered on guidance given two years in a row, and made a transformational acquisition with Exetel._





> _"Our recent full-year results for FY2021 saw us go cash ﬂow break even, with strong revenue growth across all three market segments of consumer, business and wholesale, a robust balance sheet, and strong EBITDA._





> _"Superloop is primed and ready for more growth and Peter's appointment is key to Superloop’s strategy.”_




Mr Slattery owns just under 18  per cent of Superloop worth $66 million, and his exit marks the end of a  leadership transition that began with Mr Paul Tyler's appointment as CEO a  year ago


> _"The  business is in a fundamentally different shape than what it was even as  recently as a year ago,  _Mr Tyler said_. "The build phase is largely  completed, and we are seeing strong organic growth in our segments."_


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## Dona Ferentes (18 October 2021)

maybe this is what is needed.... shrinking to greatness.  up 15%.

The uptake or utilisation numbers for HK network were only about 5% and Singapore not that much better. Now I know capacity can't be run at 100% but maybe its better to concentrate on Oz market (or even get taken over?)



> Superloop today announced it has entered into a binding agreement with funds affiliated with Columbia Capital and DigitalBridge Investment Management, the investment management arm of DigitalBridge Group, Inc. (NYSEBRG)  to sell *Superloop (Hong Kong)* Limited and certain select assets from *Superloop (Singapore) *Pte Ltd for A$140 million.  The sale price represents a 30% premium, or A$32 million above the A$108 million carrying value of the assets today.





> In connection with the sale, Superloop will maintain operations in Singapore and Hong Kong and enter into a 15 year Indefeasible Right of Use (IRU) on the existing or future expanded Singapore and Hong Kong networks. This allows the company to continue to participate in these markets and provide end-to-end connectivity services to Superloop’s INDIGO submarine cable (INDIGO) customers in the region.  Under the terms


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## Dona Ferentes (30 November 2021)

*Morgan Stanley *says a leadership renewal, divestment of non-core assets, balance sheet repair and the acquisition of Exetel have laid the groundwork for a turnaround story at Superloop.

The broker upgraded its rating on the communications company to overweight and increased its price target by nearly 40 per cent, to $1.45, from $1.05.

Morgan Stanley’s analysts said the company was gaining market share in the telco space and its medium term target of doubling revenue share to 4 to 5 per cent, from 2 per cent today, was highly achievable.


> “_Superloop has the potential to be a fast-growing telco challenger by taking share from incumbents_,” said Morgan Stanley analyst Joseph Michael.





> “_The path to balance sheet repair is clear after divesting assets in Hong Kong and Singapore. A net cash position gives Superloop optionality to accelerate organic growth, pursue further highly accretive M&A or return cash to shareholders_.”




The broker said it believed Superloop could generate EBITDA margins of 20 per cent on revenue of $500 million, supported by gross margin expansion and fixed cost leverage. In 2022 it’s expected to deliver EBITDA margin of 10 per cent.

Morgan Stanley said the company’s new leadership team would also offer a clearer strategy on increasing shareholder value. Under its previous management teams, the company had a history of missing market expectations on organic growth and M&A.


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## bk1 (30 November 2021)

I will settle for the possibility of Net Profit this FY. It should happen now that those assets in HK and Singapore have been sold, or make it a more realistic goal.


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## Dona Ferentes (14 February 2022)

Dona Ferentes said:


> maybe this is what is needed.... shrinking to greatness.  up 15%.



_but hasn't held the thrill, nor shown much reason to get excited. .... back down recently and giving up the gains._

A big slab changed hands today
3:01:14 PM  ... * @1.050 *... Vol 13,565,489 .... Amount $14,243,763.450 .... ASX ... S3 XT


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## Dona Ferentes (15 March 2022)

Dona Ferentes said:


> maybe this is what is needed.... shrinking to greatness.  up 15%.
> 
> The uptake or utilisation numbers for HK network were only about 5% and Singapore not that much better. Now I know capacity can't be run at 100% but maybe its better to concentrate on Oz market (or even get taken over?)



and that surge didn't last too long, From under $1 it ran to $1.30 on the hope a slimmed down SLC would meet or even exceed expectations. These seem to be somewhat dashed with the 1H22 results (_Afﬁrm FY22 underlying EBITDA is expected to be in a range of A$23m to A$25m_) not getting anyone excited.

Plumbed the depths below 81c recently (6 days ago)  .... but running to 93c today. Maybe it is an attractive target following the move on UWL (most of whose business is _from providing core fibre infrastructure to housing estates and other multi-dwelling developments, and selling space on the network to internet service providers_) ? As an _"enabler of connectivity and managed services ... to key data centres and commercial buildings," with __"carrier-grade fibre networks....  and fixed wireless networks in Australia",  _it could be in someone's sights?

_Though the website hasn't been curated for a while. HK and Singapore still feature heavily_


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## Dona Ferentes (25 March 2022)

> Further to Superloop’s announcement dated 18 October 2021 that it has entered into a binding agreement with funds afﬁliated with Columbia Capital and DigitalBridge Investment Management to sell Superloop (Hong Kong) Limited and certain select assets from Superloop (Singapore) Pte Ltd for $140M, Superloop wishes to advise that deal completion remains on track with material pre conditions now met,  other than one regulatory approval. Management expects the ﬁnal pre-condition of that regulatory approval to occur before the end of April 2022.




Remove the uncertainty, and a few buyers jump in/ sellers reset a bit higher. With UWL in a bit of a contest from 2 potential suitors, a cleaner, _back to basics_ SuperLoop could be a target in the future (maybe too soon for the April comp?).


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## peter2 (25 March 2022)

The prior takeover offer of $1.90 was a long time ago. (May19). 
Price has bounced off a two year support level (0.80). The volume in the bounce wasn't much. Probably just a few retail traders hoping that something may happen soon.


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## Dona Ferentes (29 April 2022)

peter2 said:


> Price has bounced off a two year support level (0.80). The volume in the bounce wasn't much. Probably just a few retail traders hoping...



SLC pulled up to low 0.90's but was getting squashed every time it tried to go much higher,

Gross sale price of Singapore and HK assets, before the cost of the Indefeasible Right of Use purchased by Superloop, remained unchanged at A$140 million, with cash settlement proceeds of approximately A$125 million.

Paul Tyler, CEO and Managing Director of Superloop, said,


> "T_his successful sale is a significant next step in our* three-year turnaround plan *aimed at simplifying the business to focus on core markets of scale. "This divestment, at a 30% premium to the carrying value of the associated assets,  strengthens our balance sheet and opens up new pathways for growth. "Our intent remains to deploy this capital to grow the business, across all three market segments as a challenger.  _





> _"Our focus remains on consumers looking for better service and value, businesses seeking to move away from underperforming and uncompetitive legacy arrangements, and new wholesale partners seeking access to automated, high quality infrastructure on much more flexible terms.  "Our significant net cash position enables us to consider further investment in organic growth, and on strategically-aligned M&A opportunities_.”




.... _a bit of a rebound off  sub 90c, on this clarification but it's a competitive market. Yes, there will be M&A, and on what side of the transaction might they end up; and growth _per se _is usually cannibalising a competitor, based on price._


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## Dona Ferentes (25 May 2022)

Dona Ferentes said:


> SLC pulled up to low 0.90's but was getting squashed every time it tried to go much higher,_._



_not getting it done. Down down down. _

With that cash burning a hole, in their wisdom, there's another acquisition. Usual blah, but the telco ICT sector is a wasteland of poor returns



> SLC has conditional sale and purchase agreement to acquire Acurus Holdings Pty Ltd, a Melbourne-based white label and technology ﬁrm. The acquisition will allow Superloop to expand *white label broadband* relationships and proﬁtable growth in its subscriber base.




- AU$15 million, comprising AU$12 million in cash and AU$3 million in SLC shares.  The vendors may also be entitled to 'earn out' payments

Acurus’s white label platform and services support the Internet offerings behind major brands such as Energy Australia and OfﬁceWorks. Other household brands, including Bakers Delight, Zen Energy, Roy Morgan and Hume Bank, have accessed Acurus’ Managed service offerings, SD-WAN and Cyber Security Services.


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## Dona Ferentes (4 July 2022)

Now instituting a buyback of shares. 

Someone thinks it's oversold.


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## Dona Ferentes (26 September 2022)

_and the mythical cash flow positive event horizon is extended, I would suspect. Acquire or be acquired in ICT land? At least this acquisition is within the skill set and funded from within._

SuperLoop will ... acquire VostroNet Holdings Pty Ltd, a provider of wholesale Fibre-to-the-Premises access networks and purpose built student accommodation broadband. The acquisition consolidates and expands Superloop’s strong managed WiFi position into adjacent On-Net broadband markets. 

VostroNet is an infrastructure owner and internet provider delivering highspeed FTTP and intelligent WiFi networks for multi-dwelling and broadacre developments serviced with VostroNet fiber networks. Key customers include UniLodge, Iglu Student Accommodation, Queensland University of Technology and  Sunshine Coast Council for WiFi solutions  and Billbergia,  CBUS and Consolidated Properties  for smart FTTP network infrastructure. 

The combination of assets will deliver a market-leading position in the supply of broadband in the Tertiary Student accommodation sector,  delivering national coverage to approximately 40,000 student beds. As discussed in Superloop’s recent earnings call, it is encouraging to note this market segment has now recovered to its pre-COVID levels.  The acquisition represents the next step in Superloop's strategy to develop its OnNet Smart Communities division via the addition of FTTP capabilities, installed base and pipeline to address adjacent markets such as New Developments, Build to Rent, broadacre and MDU markets and associated infrastructure builds. 

Consideration for the acquisition is AU$35 million (before customary completion adjustments), comprising AU$24.5 million in cash and AU$10.5 million in Superloop shares.  The vendors may also be entitled to 'earn out' payments (capped at AU$15m in cash), subject to meeting certain take-up targets...

The acquisition will be funded from Superloop's existing cash reserves.


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## Dona Ferentes (11 October 2022)

In the 3 year, bi-lateral agreement, Superloop and Uniti have each agreed to terms whereby Superloop will preference Uniti for various Consumer services and Uniti will preference Superloop’s Business and Wholesale offerings. Superloop will also acquire Layer 2 services on the Uniti network for the same period.

( Uniti _was listed until a consortium of Brookfield and super funds took it private in Aug 2022 _)

That and the AGM today has seen a small lift off lows to be 67c .



> _Our strategy is clear and simple - we are leveraging our quality telecommunications infrastructure assets to support the Challengers in our market (Superloop included) to gain a 30% share of the Australian internet/connectivity market. Following significant progress made in FY22, Superloop is now a far simpler and attractive investment, underpinned by organic growth momentum, growing EBITDA and a strong balance sheet with capital flexibility_.


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## Dona Ferentes (27 October 2022)

_SLC register is becoming a bit more open_.

Bevan Slattery has sold down from 13.2% to 8.45% 
Regal Funds has lifted from 5.07% to 9.15%.
And I presume other insto's have picked up the remainder. SLC now mid 70's, up from below 60c in mid Sept


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## Dona Ferentes (4 November 2022)

Dona Ferentes said:


> _SLC register is becoming a bit more open_.
> 
> Bevan Slattery has sold down from 13.2% to 8.45%



and gone.......
_Bevan Slattery, founder and former executive chairman sold his final 40.8 million shares on Friday, representing the final 8.5 per cent stake in Superloop. Stockbroker Morgans put together a group of institutional investors to bid *70¢ *a share for the stake,_


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## Dona Ferentes (23 December 2022)

_hard to make a quid in telcoland, and I guess acquiring some more punters in a bulk deal is efficient, as long as they don't migrate elsewhere (Oh, fickle consumers)_

SLC has executed a subscriber transfer agreement to acquire all of MyRepublic Pty Ltd’s 52,000 (approximately) NBN subscribers at $250 per migrated subscriber. The agreement relates to the acquisition of subscribers only and does not include any assets or liabilities of the MyRepublic legal entity. The agreement is effective from 23 December 2022 with completion expected shortly thereafter. The bulk of MyRepublic customers are expected to migrate to the Superloop brand during February 2023. 

The final purchase price will be adjusted to reflect the exact number of subscribers who will ultimately migrate to Superloop. Should all potential subscribers migrate, total consideration would be A$13,000,000 (approx.).

The acquisition will be immediately accretive with all synergies being realised during the migration process and does not involve any material increase in Superloop operating and capital costs. Post-acquisition, Superloop’s Consumer segment will continue to target gross margins of 25%. On a post synergy, pro-forma basis, the acquisition is expected to add $6.5m of EBITDA to Superloop in the first 12 months.



> Superloop CEO, Paul Tyler said “_We are delighted to welcome MyRepublic customers to the Superloop experience. This purchase is strongly accretive for shareholders as it provides growth at scale at a very attractive multiple of approx 2x EBITDA (post synergy). _





> _"Superloop’s unique, highly automated platform will allow for a seamless migration process with MyRepublic customers benefitting from Superloop’s attractive NBN plans.”_


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