Two internet service providers backed by Andrew Forrest’s Tattarang are set to merge and list on the ASX through a reverse takeover of Sydney-based outfit Stemify.
Two internet service providers backed by Andrew Forrest’s Tattarang are set to merge and list on the ASX through a reverse takeover of Sydney-based outfit Stemify.
The move will bring together Geraldton-based NodeOne Internet and NSW-based Swoop as newly minted Swoop Holdings, with Swoop director and Vocus founder James Spenceley joining as company chair.
This merger will be supported by a $20 million capital raising, set to open next month, for the purpose of expanding infrastructure and making acquisitions.
Shares will be issued at 50 cents each with the public offer closing in April, with the listing, subject to Stemify shareholder approval, to be finalised later that month.
Andrew Forrest’s Tattarang outfit retains an interest in both companies, with Amcom founder Anthony Grist, who is involved with Swoop, Stemify and Tattarang, to join as a director of the newly formed entity.
Mr Grist told Business News that the new business would benefit from the knowledge of internet infrastructure that Swoop chief executive Alex West and NodeOne Internet chief executive Richard Whiting can provide.
“The modern iteration of that has been fixed wireless, which is a point-to-point, high-speed solution that delivers much higher speeds than the NBN provides," he said.
“While the core offering of both companies is what you would call an NBN alternative, because you’ve got high-speed, last-mile solutions for small businesses and consumers that do 100 megabits to 200 megabits, up to a gigabit versus the standard NBN solution, which is 25 or 50 megabits.
“You’ve got a very high technology, high-speed offering on your own network and we’ve got our own network in metro Perth and regional towns, and in Sydney and Melbourne, of fixed-wireless towers that provide these high-speed, point-to-point links that bypass the NBN.”
Mr Spenceley said he appreciated the opportunity to return to the telco industry.
"Additionally, to be backed by one of Australia’s richest men and have an ever-growing team of high calibre Industry veterans in the business, makes this a very exciting journey ahead," he said.
Mr Whitling said the newly formed outfit would allow for better internet services for Western Australians.
He confirmed NodeOne Internet would continue to operate under its current brand in WA.
News of this merger follows Osborne Park-based cloud, network and security outfit NEXION Network’s ASX debut after having raised $8 million through its IPO at 20 cents a share.
Co-founder and chief executive Paul Glass said capital raised during the IPO would help the company expand globally.
Shares in the group were trading at 24 cents each at 4pm AEDT.
