EQT stalks Vocus (VOC)
Stock
Vocus (VOC) $4.80 as at 27/05/2019
Event
Telecommunications company Vocus (VOC) delayed the start of trading in its shares this morning after receiving a non-binding takeover proposal from Swedish private equity house EQT.
The indicative offer of $5.25 is a 35% premium to where shares closed on Friday night which is enough to grant EQT non-exclusive due diligence in the hope of courting a firm bid.
Vocus has been on some ride over the past few years, climbing to the lofty heights above $9 in 2016 while embarking on an aggressive expansion strategy. The stock struggled later that year as it became clear Vocus had stretched the budget on a number of acquisitions, and the stock traded to a low of nearly $2. More recently shares in the internet provider, data centre operator and unified communication business have fared slightly better while the company aimed to cull under performing segments.
Shares are trading 23% higher today to $4.80, just shy of a 10% discount to the offer as the market prices in the risks of an early stage deal
Vocus (VOC) Chart
Market Matters Take/Outlook
