Symbio received a non-binding indicative proposal from Superloop to acquire all of the shares valuing Symbio at $2.85 per Share + Special Dividend with franking credits of $0.15 per share. i.e. total $3 per Share.

In the same announcement, it announced it's on track to achieve FY23 EBITDA at the upper end of its stated guidance in the range of $27m to $28m.

My View

• At $3, Symbio's market cap is roughly around $260m
• It probably has ~$35m cash so EV = $225m
• Symbio has gone and changed its business significantly in the last 3 years ( it divested all declining businesses and invested heavily in growth businesses and expanded in Singapore and Malaysia) and its almost finished with its investment cycle.
• I think $3 doesn't reflect the potential earning growth Symbio has in front of it
• I don't think this deal will be done at $3 ( There is significant holding from insiders and they will definitely look after the Shareholder's interest in my view). There can be potentially competing proposals from other companies (maybe AussiBroadband locally or Bandwidth (NASDAQ:BAND or similar).
• I would much prefer it not to be acquired and if it has to then it should be acquired by Company focusing on Telco Software rather than pure Telco.

In any case, I am looking forward to 25% paper gain tomorrow. Although $3 barely puts me in the green ( would be very annoyed if this deal gets done - mainly because I invested so much energy/time/effort understanding ins and outs of this business - that all will go to waste.