After conducting due diligence, Aussie Broadband ((ABB)) has offered $5.75 in cash or 1.15 Aussie Broadband shares for Over The Wire Holdings. This assumes a $5 Aussie Broadband share price or a combination of cash and shares, highlights Morgans.
The broker notes Aussie Broadband shares closed yesterday at $5.20, which implies slightly more upside for Over The Wire Holdings shareholders. Additionally, if shareholders elect share consideration,it’s thought they may participate in some synergy-related upside.
Morgans retains its Hold rating and $5.75 target price.
Sector: Software & Services.
Target price is $5.75.Current Price is $5.69. Difference: $0.06 – (brackets indicate current price is over target). If OTW meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).