29 Jun 2016
Australian operator Vocus Communications is planning to buy smaller rival Nextgen Networks from Canada’s Ontario Teachers’ Pension Plan and Spanish-controlled infrastructure giant CIMIC Group (formerly called Leighton Holdings) in a deal worth approximately AUD807 million (USD600 million). Vocus is aiming to raise AUD652 million via an entitlement offer (AUD200 million) and placement (AUD452 million), while the balance will be funded via existing committed debt facilities. The acquisition will see Vocus acquire all of Nextgen’s backhaul assets in addition to two development projects, the North West Cable System (NWCS) and the Australia Singapore Cable (ASC). The proposed deal does not include Nextgen’s data centre business Metronode, which operates as a separate entity. Nextgen currently operates one of Australia’s largest fibre networks, with 17,000km of fibre-optic cables connecting capital cities to regional and remote areas.