Spirit Telecom’s boss said the decision to reject a Uniti Wireless takeover was ‘not a long meeting’
Geoff Neate, managing director of Spirit Telecom (ASX:ST1), says the board unanimously rejected a takeover bid from newly-listed Uniti Wireless (ASX:UWL).
Uniti announced to the market on Friday that it was “in discussions” with Spirit regarding an acquisition.
But it was not an in-depth discussion, Neate told Stockhead.
“We always evaluate anything that is put in front of us… but it wasn’t a long meeting,” he said.
Uniti had issued a non-binding indicative offer to acquire Spirit in full, but dismissed it on Tuesday, saying it “intends to proceed with the normal course of its operations including organic growth and acquisitions”.
On Wednesday Spirit then announced an acquisition of its own, paying $5.7 million for LinkOne Group, a wholesale licensed telecommunications carrier.
Neate told Stockhead that the LinkOne acquisition was a big deal for his business, with the expectation that it will be “highly earnings accretive and will add significant value to Spirit”.
“This is really going to open up new channels and a wider customer base for us,” he said. “This provides with more opportunity for growth.”