Vocus shares have jumped nearly 25 per cent after the internet provider opened its books to EQT Infrastructure’s $3.3 billion takeover proposal.
Australia’s fourth largest telecommunications provider on Monday said Stockholm-based private equity firm EQT had made a non-binding indicative proposal of $5.25 for each Vocus share.
The offer represented a 35 per cent premium to the stock’s $3.89 valuation before the start of trade and, 35 minutes into Monday’s session, had pushed up the shares by 24.4 per cent to a two-and-a-half year high of $4.84.
Vocus has granted non-exclusive due diligence access to EQT and expects any formal binding proposal “is likely to take a number of weeks”.
“The board notes that there is no certainty that this process or the indicative proposal will result in an offer for Vocus,” the company said in a release.
“Shareholders do not need to take any action in response to the indicative proposal at this time.”
Shares in Vocus were worth $2.34 a year ago.