Australian Broadband recently won regulatory approval from Singapore to acquire a stake of up to 19.9 per cent in rival internet company Superloop. The approval follows Australian Broadband’s required sale of 38 million shares.
The Singapore Infocomm Media Development Authority (IMDA) has given Australia Broadband unconditional permission to sell shares. The reason is to satisfy the 12 per cent regulated ownership oyster introduced by IMDA before such ownership became unlikely would greatly hinder competition. He was commanded to do so.
Although Australian Broadband challenged the share sale instructions by seeking an injunction, the court refused the application.Tel had no choice but to sell part of its equity stake. Australian broadband is still undecided on future ownership decisions. It explained that it had no obligation to acquire additional shares in Superloop and was continuing to evaluate its existing shareholding.
The company declined to elaborate on whether it intends to buy back the acquired shares. The development follows an earlier bid by Australian Broadband to acquire Superloop for $466 million, an offer Superloop rejected in February.
