OptiComm has received a non-binding offer from First State Super. Morgans suggests investors Hold and states there is upside risk relating to the possibility of a higher bid eventuating.
The OptiComm board will postpone the vote on Uniti Group’s (UWL) takeover offer, to allow First State Super time to undertake due diligence. This will allow a short period for First State Super to present a binding offer or walk away. In the latter case, Uniti Group becomes the new owner.
The offer is $5.85 all cash, non-binding and subject to several terms and conditions. It compares to the Uniti Group’s unconditional bid of $5.10 plus a 10cps dividend.
The Hold rating and target price of $5.10 are unchanged.
Sector: Telecommunication Services.
Target price is $5.10.Current Price is $5.63. Difference: ($0.53) – (brackets indicate current price is over target). If OPC meets the Morgans target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
