EQT scraps $2.3bn Vocus offer after due-diligence process

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Private equity major EQT has pulled out of a potential $2.3bn buyout of Australian fibre network services provider Vocus, just days after trade buyer AGL Energy also scrapped its bid.

EQT had been undertaking due-diligence on ASX-listed Vocus after seeing its A$5.25 per share offer accepted towards the end of May, representing a 35 per cent premium on Vocus’ closing share price on May 24.

Vocus operates Australia’s second largest inter-capital network and also operates an extensive network in New Zealand.

The company’s terrestrial network covers around 30,000km and is supported by 4,600km of submarine cable connecting Singapore, Indonesia and Australia, as well as 2,100km of submarine cable between offshore oil and gas facilities in the Timor Sea.

The company has struggled of late in the face of increasing competition and missed profit forecasts in the last couple of years.

A statement from Vocus said, “Following an accelerated period of due diligence, EQT has decided not to proceed with the transaction outlined in the indicative proposal.

“Accordingly, discussions with EQT in relation to the indicative proposal have now ceased.”

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