Clever Communications goes after BigAir

Stuart Corner
Thursday, 02 October 2008 13:31

IT Industry - Deals

Clever Communications has launched a takeover bid for rival broadband wireless network operator BigAir, with an all-share offer that values BigAir at a 16 percent premium on its recent share price.

Clever (ASX: CVA) owns and operates WiMAX broadband networks in Sydney, Melbourne, Brisbane and Adelaide. BigAir (ASX: BGL) has similar networks in Sydney, Melbourne and Brisbane.

The chairman of Clever, David Williams, said: "We believe that a merger of BigAir and Clever is in the interests of the shareholders of both companies. The increased size, scale, market capitalisation and geographic footprint of combining two of Australia largest fixed wireless broadband carriers could result in potential synergy and operational benefits and a re-rating of the merged business which would be well-positioned to actively participate in further industry consolidation."

Clever said the potential benefits could include: synergies in governance, shared services and compliance costs; an expanded customer base and product range; increased sales channels and increased opportunities to cross-sell products; increased liquidity for both BigAir and Clever shareholders from a significantly increased market capitalisation and number of shares on issue.

At the time of writing, BigAir had not responded to the offer.