Network infrastructure company Superloop has just bought SubPartners which has a piece of a new subsea cable planned to connect Singapore, Indonesia and Australia.
The $US2.5 million ($3.3 million) share script acquisition will deliver the dark fibre company a team with substantial submarine cable experience and an ability to lead future potential cable investments.
A short time ago, Superloop shares were up 2% to $2.34.
AARNet, Google, Indosat Ooredoo, Singtel, SubPartners and Telstra today announced an agreement with Alcatel Submarine Networks to build a new international subsea cable system.
The INDIGO cable system, spanning 9000km and connecting Singapore and Perth and on to Sydney, is expected to be completed by mid-2019.
“We are very excited by the prospect of offering customers a fully meshed Pan-Asian network, connecting the existing metropolitan networks which we own and operate,” says Bevan Slattery, chairman and CEO of Superloop.
“Once the cables are complete, we will have even more capacity to meet growing customer demand across the region.”
Slattery is the owner of 80% of the issued capital of SubPartners and will be the main beneficiary of the shares issued for the purchase.
If shareholders approve the deal, Slattery’s holding in Superloop will increase to about 29.1% from 28.8%.
Superloop owns and operates 540km of fibre networks in Australia, Singapore and Hong Kong, connecting 70 of the region’s key data centres.
Last year Superloop bought wireless and IT services company BigAir.
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