Online infrastructure company Superloop (ASX: SLC) is in the sights of Queensland Investment Corporation (QIC), the $85 billion fund manager.

The company confirmed this morning that it received a non-binding indicative bid from QIC back on April 2, valuing the company at $1.90 per share.

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On April 26, QIC lobbed another indicative bid priced at $1.95. Shares in SLC were valued at $1.46 on April 2, and climbed steadily throughout the month to close yesterday at $1.81.

The new bid also gives Superloop shareholders the option to receive payment in cash or a combination of cash and scrip.

Regional connection

Founded by telco entrepreneur Bevan Slattery, Superloop constructs the pipes which provide internet connections between Australia, Singapore and Hong Kong.

After a three-year construction phase, the company’s submarine cable is expected to be live by June. In its half-year report, Superloop said it expected to make $13-18m in EBITDA in FY19 and $26-30m in FY20.

In this morning’s announcement, Superloop said its board reviewed the proposal and considered that “it is in the best interests of Superloop shareholders to grant QIC a period of approximately three weeks to conduct due diligence on an exclusive basis”.

The two sides may choose to extend the deadline by mutual agreement. Superloop reemphasised that the offer remains indicative and incomplete, and there is “no certainty” it will result in a deal.

Shares in Superloop were up another 4.4 per cent this morning at $1.89.


In other ASX corporate news this morning

Keybridge Capital has nixed its $20 million off-market takeover offer for Yowie Ltd (ASX: YOW). Keybridge was offering 9.2 cents per share, about a 30 per cent premium to Yowie’s recent trading range. However, it was unhappy with Yowie’s March quarter trading update, which revealed an operating loss and a sharp fall in revenue. As a result, Keybridge said the defeating conditions of its bid have been breached and it will not proceed. Shares in Yowie were down 4.2 per cent in morning trade to 6.8 cents.
Shares in National Tyre & Wheel (ASX: NTD) slumped by more than 15 per cent to 38.5 cents after the company released a disappointing trading update last night. NTD said Q3 revenues were weighed down by “sluggish consumer demand and heightened price competition”. The company revised its 2019 EBITDA forecast to a range between $11.5m and $12.5m. It said it was working on a number of initiatives for FY20, including changes to its product mix and increased price competitiveness.
Investment company HGL Limited (ASX: HNG) also provided a trading update, with net profit after tax for the six months ended March 2019 expected to be in the range between $0.8 million to $1.1 million. The company said it was negatively impacted by its investment in JSB Lighting, which saw a decrease in sales in connection a legal dispute. Shares in HNG were unchanged at 40 cents.
And after markets-close last night, copper producer Finders Resources (ASX: FND) advised that Eastern Field Developments Limited has exercised its compulsory acquisition rights to acquire the remaining shares in Finders it doesn’t already own. The remaining shares were purchased for the initial offer price of 23 cents in accordance with Corporations Act rules. The purchase will complete Eastern Fields’ takeover which was first launched in October 2017.