Today marks a bittersweet farewell to Uniti Group Ltd (ASX: UWL) shares and their inclusion in the S&P/ASX 200 Index (ASX: XJO). Likewise, shares in the telecommunications company have been suspended from quotation.
For those keeping tabs, the closing of Uniti's chapter as an ASX-listed company comes four months and seven days from confirming exclusive discussions with Morrison & Co.
The official sayonara follows the Federal Court's approval of the scheme of arrangement.
Image source: Getty Images
What does it all mean?
After hovering between $4.90 and $4.99 per share on the ASX, Uniti has finally ticked the last box to be acquired by MBC BidCo Pty Ltd.
The consortium comprising Morrison & Co, Commonwealth Superannuation Corporation, and BIF IV One Holdings (a Brookfield entity), will be cheering today as the deal to acquire Uniti becomes legally effective.
According to the release, Uniti shareholders will be entitled to a total cash consideration of $5.00 per share on Thursday 28 July 2022. Importantly, this will be comprised of two parts: one is a cash payment of $4.895 per Uniti share, the other being a 10.5 cents per share dividend.
Furthermore, the scheme record date will take place on 28 July, shortly followed by the implementation date on 4 August. This second date marks the time in which shareholders can expect to receive their two-part payment.
Uniti shares' successful ASX stint
While Uniti might be saying goodbye to the ASX, it leaves behind a short history of immense value creation.
Notably, since commencing its listed life 3 and a half years ago, the Uniti share price has ascended 2,672%. That represents a remarkable compound annual growth rate (CAGR) of 163%.
This clinical demonstration of shareholder value creation was defined by a series of highly successful acquisitions. During its short listed-life, Uniti Group acquired several earnings accretive telecommunications companies, including:
- Pivit Pty Ltd – April 2019
- Fone Dynamics – May 2019
- Call Dynamics – May 2019
- LBNCo Pty Ltd – August 2019
- OPENetworks – October 2019
- 1300 Australia – December 2019
- OptiComm – June 2020
- Harbour ISP – November 2020
- Telstra Velocity – December 2020
In turn, Uniti grew its 12-month trailing revenue from $5.48 million to $214.77 million between 2018 and today. Similarly, profits evolved from $9.92 million in losses to $54.59 million in positive earnings over the same time.
Finally, Uniti shares are up 44% compared to where they were a year ago.
