The Amaysim Australia Ltd (ASX: AYS) share price has rocketed 7.69% at market open this morning after the telco’s latest acquisition.
Why is the amaysim share price going gangbusters?
amaysim has completed the acquisition of mobile virtual network operator (MVNO) Jeenee Communications Pty Ltd this morning.
The Aussie telco purchased the privately-owned MVNO for $7.8 million to expand its MVNO offering.
The acquisition is part of amaysim’s strategy to grow its mobile market share both organically and through acquisitions.
Jeenee has more than 41,700 recurring mobile subscribers and also uses the Optus network. Optus will apply to all acquired subscribers, delivering strong cost synergies for the group.
The amaysim share price has already lifted nearly 8% in morning trade following the acquisition, which is anticipated to deliver earnings upside from FY21 onwards.
What else is happening for amaysim?
This morning’s announcement comes after an Australian Financial Review article rumouring a turnaround of amaysim.
The Street Talk article reported one of amaysim’s biggest shareholders is in talks with turnaround specialists about a potential public to private takeover of the telco.
The amaysim share price closed at $0.39 per share last Friday, which isn’t far from its all-time low of $0.30 per share set in September.
It has been a painful 4 years for shareholders who have watched the company’s shares fall from $1.80 in its IPO in 2015.
The company’s shares are now trading for $0.42 at the time of writing and are well worth watching this morning, following both the acquisition announcement and rumoured takeover talks.
How have the Aussie telcos performed in 2019?
Telstra Corporation Ltd (ASX: TLS) has been the pick of the Aussie telcos in 2019. Telstra shares have gained 39.35% to outperform the ASX 200 in 2019, while the amaysim share price is down 56.67% this year.
TPG Telecom Ltd (ASX: TPM) shares have fared better and gained 11.13%, but remain an underperformer amongst the ASX 200.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.