In the spotlight: Vocus Communications & M2 Group merger
Vocus Communications (ASX:VOC) announced on Monday it would acquire M2 Group shares (ASX:MTU) via scheme of arrangement. This $3 billion dollar company will be accretive for Vocus shareholders in FY16 and over the medium term. $40m in cost savings is conservative in our view as it represents ~4% of the combined operating cost base. This is a serious telecommunications operator to provide a threat to TPG, Telstra and Optus. Watching how their share price plays out into the new year could see Vocus shareholders buy MTU at bargain if their price falls lower. By leveraging Vocus' NBN infrastructure and on boarding M2's service distribution we should continue to see some growth in the new Vocus. (VIEW LINK)
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Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap)...
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