OPC - OptiComm Ltd

[System]

OptiComm is a licensed carrier and wholesale network infrastructure operator which designs, builds, operates and maintains fixed-line access, fibre-based, telecommunications networks servicing new residential, commercial and retail developments within Australia. OptiComm utilises Fibre-to-the-Premises (FTTP) technology in the vast majority of its networks, with a small proportion (less than 4%) utilising Fibre-to-the-Building (FTTB) and hybrid fibre coax (HFC) based technologies as at 30 June 2019.

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.

OptiComm has been a licensed carrier and wholesale network infrastructure operator since 2007.

It is anticipated that OPC will list on the ASX during August 2019.

https://www.opticomm.net.au

 

[Dona Ferentes]

another recent addition to the boards, that doesn't have much of a following it would seem.

It IPOed in August 2019 at $2.00, opened well north of that and is now trading above $4.00. Like most small raises, it emerged from an existing concern by offering up a small proportion of its capital base to new money. This can be a danger for the Secondary Market, as earlier investors, founders and /or seed money, can find a way to monetise out. One interesting observation is that the published Top 20 includes 13 that are individuals, usually represented by their SMSF. Largest shareholder is Opnet Pty Ltd at 11% and there are only 2 custodial entities (implying fund managers?).

Morgans handled the IPO, the company is presenting at other brokers such as Shaws and Morgan Stanley

This article from Wise Owl has some insight:
https://www.theaustralian.com.au/bu...o/news-story/b540ffee1ed08a8a60fc94092ca54572

...OptiComm is a licensed Australian wholesale communications provider focused on fibre-to-the-premises (FTTP) technology — an alternative provider and competitor to government-owned NBN Co. The national broadband rollout is never far from controversy and an increasing number of competitors have recently emerged, seeking to take advantage of an unsatisfied market.

The OptiComm business is driven by new housing construction and consumer demand for fast and reliable bandwidth services within residential, commercial and retail market segments. OptiComm has built 245 fibre networks for housing estates all across Australia connecting more than 76,000 dwellings to the network. The company forecasts to install fibre network infrastructure to 18,000 additional lots in the 2020 financial year with a pipeline of more than 100,000 lots...

The company is on track to deliver revenue and profit growth through to 2020, forecasting to deliver $70 million in sales and net profit after tax of $22.1m.

 

[Dona Ferentes]

OPC held Investor Day yesterday, and up 50c or some 13%

The company
-confirmed guidance, built on the story of ever increasing use of fixed line broadband (fibre to the premises),
- develops services that will grow market share, working with planned communities, retirement complexes, apartments, commercial, hotels and shopping centres
- has no competing fixed line infrastructure (with implied legacy issues and old technologies)

 

[Dona Ferentes]

bring out a good Investor Day presentation, look after the big end of town, have a good story .... and what have you got?

Any earlier selling from early investors taking a bit off the table is nipped in the bud. OPC has surged past the earlier December high of $4.50, and definitely picked up from the recent low of $3.80 at start of Feb. Closed at $4.64. Onward (as long as the economy grows apace)

 

[Dona Ferentes]

I haven't seen any Change in Substantial holding notices yet, but OptiComm seems to have digested a major shareholder selling out (for their own good reasons, I would imagine; getting their hands on some readies). OPC is trading down today but holding above the $4.40 achieved in the block sale.

AFL Telecommunications has moved to sell a $51.6 million stake in listed broadband network builder OptiComm.The 11.7 million shares, which comprised AFL's entire stake and 11.3 per cent of the company, were offered at $4.40 each on Wednesday afternoon. The price represented an 8.9 per cent discount to the last close of $4.83 per share, according to terms sent to fund managers.

The sale comes only seven months after OptiComm listed on the ASX at $2 a share. AFL Telecommunications held 14.2 per cent of the company prior to the listing and retained an 11.3 per cent stake.

OPC calls itself a National Broadband Fibre designer, builder, owner and operator, and deals mainly with new residential, commercial and retail developments. In this day and age, there would be pluses and minuses affecting their business. As an 'essential service', they would still be operating.

Commercial may have slowed, and retail especially, though residential probably has a continuity. Suburbs are being built and customers then take up the broadband offering (probably better than a retrofitted NBN camel). Its not unusual for families, now working and schooling from home, to have a score or more appliances accessing WiFi around the home. But this can be a double edged sword for service providers:

But then, there's distinct and changing usage since the virus became an issue. A view is, as we go longer in lockdown, that this has "driven business and entertainment online, but left telcos spending to service surging demand, and, with fixed pricing structures, no quick way to monetise the investment."
"At the same time, roaming revenue has dried up as people travel less, and telcos are bracing for a slump in new contracts accompanying a wave of unemployment as businesses shut."

 

[Dona Ferentes]

Small players getting together.

OPC and Uniti UWL joining up.

 

[Dona Ferentes]

fat lady still gargling, in the green room

OptiComm has ... received a non-binding and conditional competing proposal to acquire 100% of the shares in OptiComm pursuant to a scheme of arrangement from FSS Trustee Corporation as trustee for the First State Superannuation Scheme. The Competing Proposal includes due diligence and final investment committee approval conditions. The Competing Proposal also includes a condition that the OptiComm Board allow the Competing Bidder to conduct due diligence on OptiComm for the period ending on next Friday, the 18th of September 2020.

The Competing Proposal was unsolicited and prior to receipt of the Competing Proposal, OptiComm had not engaged in any way with the Competing Bidder and no information had been provided to the Competing Bidder. Under the Competing Proposal, OptiComm shareholders would receive 100% cash consideration of A$5.85 per OptiComm share held (less any dividends or distributions OptiComm shareholders may become entitled to after the date of the offer).

... also is open to paying a fully franked special dividend in the amount of 10 cents per OptiComm share in connection with the Competing Proposal (which if paid would be deducted from the A$5.85 per share cash consideration).

- based on today's price action, it may be unlikely UWL comes back. But you never know.

 

[Dona Ferentes]

our pneumatic warbler now standing in the wings, awaiting a signal to grace the stage


Uniti Group has taken a 19.5 per cent stake in OptiComm and increased its takeover offer to $5.85 a share. Uniti has made a 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.

The stake, secured by call options and shares from OptiComm institutional shareholders in the past few days, also makes it hard for First State to buy OptiComm via a scheme of arrangement.

The increased cash component of its bid would be funded by debt provided by Commonwealth Bank of Australia and Westpac.

*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)

-- which should get it across the line. Uniti has the advantage of synergy and cost stripping when the two merge

 

[Dona Ferentes]

dat fat laydee ain't on stage yet

OptiComm advises that on Monday, 12 October 2020, it received a proposal from Aware Super to make an offmarket takeover offer for all of the shares in OptiComm for $6.50 per share (including a fully franked special dividend of $0.10 per share) .

3 month; daily:

 

[peter2]

Uniti throws in another higher bid.

 

[Dona Ferentes]

OPC has received a revised binding offer from Uniti at a value of $6.67 per share under which it is proposed that Uniti would acquire all OptiComm shares (other than the shares it owns) pursuant to one fixed consideration offer to all OptiComm shareholders (other than foreign ineligible shareholders who will receive $6.67 cash per OptiComm share) of:

• $5.20 cash per OptiComm share (including a fully franked special dividend of $0.10 per share); and
• 1.07 Uniti shares per OptiComm share (which implies $1.4659 per OptiComm share calculated on the basis of the closing trading price of Uniti shares on 14 October 2020 of $1.37),

Love an auction

 

[System]

On November 23rd, 2020, OptiComm Ltd (OPC) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between OPC and its shareholders in connection with the acquisition of all the issued capital in OPC by Uniti Group Limited.