Vocus shares tumble as the rollercoaster continues
Stock
Vocus (VOC) $3.05 as at 17/06/2019
Event
VOC shares have been walloped early in the session after it was revealed potential buyer AGL had walked from the table.
AGL was granted due diligence just last week after they lobbed a bid at $4.85/share but that deal is now dead in the water, and Vocus has lost two potential buyers within a fortnight.
The announcement from AGL said they were “no longer confident that an acquisition of Vocus at the proposed terms would represent sufficient certainty of creating value for AGL shareholders.”
Today’s 30% hit to the share price sends the stock to new lows for 2019 as investors digest the news that neither AGL or EQT, which had bid for Vocus in late May, saw any reason to remain in the data room for more than a few days. Management reiterated FY19 EBITDA guidance of $350m-$370m which is inline with analyst estimates at the $358m mark. Vocus also maintained the 3-year turnaround rhetoric to shareholders however for two deals to fall over in this manner points to some serious concerns with how the underlying business is operating – not to mention the distraction which comes with takeover bids.
AGL shares on the other hand are trading better today, up around 2.5%. Shares fell when it announced the bid for Vocus, however that also came with a slight downgrade to earnings at the time.
Vocus (VOC) Chart
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Vocus Communications (VOC) Chart[/caption]
Market Matters Take/Outlook
