(Bloomberg) — Australian residential cabling firm Uniti Group Limited will end talks with rival bidders after receiving an improved A$3.4 billion ($2.6 billion) takeover offer from Brookfield Infrastructure Partners and HRL Morrison & Co.
Uniti received a revised A$5 per share proposal from the consortium that also makes Brookfield an equal partner with Morrison, the Adelaide-based broadband provider said Tuesday in a statement. The company will now end discussions over a competing offer from Macquarie Asset Management and PSP Investments, it said.
“After careful consideration of both proposals, the board has determined it is in the best interests of Uniti shareholders to engage with the Morrison/Brookfield consortium,” Uniti said in the statement.
The Macquarie and PSP consortium is no longer planning to pursue the business, according to a person familiar with the matter, who asked not to be named as the matter was confidential. The Australian Financial Review reported the group’s plans earlier on Tuesday. A representative for the consortium declined to comment.
Read more: Brookfield Joins Morrison as Bidding for Uniti Heats Up
Deal volumes in the global telecommunications sector rose to the highest level in two decades last year, according to data compiled by Bloomberg, as the pandemic fueled a digital shift in everything from e-commerce to entertainment. Macquarie’s infrastructure unit and pension fund Aware Super Pty. last year completed one of Australia’s biggest deals to acquire data services company Vocus Group Ltd.
Uniti said Macquarie’s ownership of Vocus also influenced its decision, because of concerns about providing sensitive information to a competitor.
(Adds Macquarie and PSP dropping Uniti pursuit in fourth paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
