Uniti Wireless Limited [ASX:UWL] is a fixed wireless broadband connections provider based in Australia. It had a surge in price yesterday of 25%. The company provides wireless broadband connections to residential houses and small- and medium-sized enterprises over the NBN.
What’s the news behind this price move?
On 29 March, Uniti Wireless released an announcement addressing speculation surrounding a potential acquisition of Spirit Telecom Limited [ASX:ST1]. Uniti Wireless has confirmed it had made an initial non-binding indicative offer to acquire 100% of the issued securities of Spirit Telecom Limited.
Last week, the share price of Uniti Wireless broke out higher on the news of the bid, although didn’t attract much attention during the trading day from investors and speculators.
Since then, this takeover news has had time to circulate and it’s reasonable to assume that this development is now built into the price of both stocks.
Spirit Telecom’s technology could provide the equivalent of 5G speeds and is separate from the NBN network. This puts Uniti Wireless in a unique position to acquire some great technology and continue to compete against the major players should the merger or acquisition occur.
For now, speculation is probably driving this price move. It is one for the watch list. This article is not an endorsement to buy stock. It’s an update only.