Australia’s Uniti accepts $2.7 billion takeover bid from Brookfield, Morrison & Co

April 14 (Reuters) – Uniti Group (UWL.AX) has accepted a takeover bid of nearly 3.62 billion Australian dollars ($2.70 billion) by a unit of Canada’s Brookfield Asset Management Inc (BAMa .TO) and fund manager Morrison & Co, the Australian telecommunications company said on Thursday.

Uniti shares, which have jumped more than 50% since entering exclusive talks with Morrison on March 15, rose 3.1% to a record high of AU$4.97 in early trading.

Under the potential deal, Uniti shareholders will receive A$5.0 per share, a premium of 58.7% to the share’s closing price on March 14, a day before the telecommunications company receives an initial offer of A$4.50 per share from Morrison.

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Uniti’s board has unanimously recommended that its shareholders vote in favor of the proposal.

In late March, the Morrison-Brookfield consortium matched a competing offer of A$5 a coin from the asset management arm of Macquarie Group (MQG.AX) and the Public Sector Pensions Investment Board of Canada. for Uniti.

The proposal required the Australian telecommunications company not to engage further with the Macquarie-led consortium or grant it due diligence access.

Uniti’s proposal is Morrison & Co’s latest telecommunications venture after funds managed by it acquired a 49% stake in Telstra’s (TLS.AX) mobile tower business last year . Read more

Brookfield has also been involved in a number of transactions in Australia. In recent weeks, his investment vehicle bought asset manager La Trobe Financial in a $1.1 billion deal, and he had also tried to buy power producer AGL Energy ( AGL.AX). Read more

($1 = 1.3428 Australian dollars)

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Reporting by Harish Sridharan in Bengaluru; Editing by Vinay Dwivedi and Sherry Jacob-Phillips

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