UNITI ACQUIRES TELSTRA VELOCITY® & SOUTH BRISBANE EXCHANGE ASSETS

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    Adds ~50,000 Active FTTP Services. Telstra to become a RSP of Uniti. Highly
    Accretive.

    - Telstra Velocity® & South Brisbane Exchange is Australia’s second largest private FTTP network
    - ~ 68,000 premises passed, ~ 65,000 FTTP connected premises, ~50,000 active premises
    - Telstra to become a RSP on Uniti’s national FTTP network (including OptiComm)
    - Purchase Price of $140M, $85M payable on completion, $55M deferred with $20M payable over 3
    years and $35M on completion of migration of the assets and services, with an ability to adjust the
    total purchase price subject to the size of the customer base at the time of migration
    - Uniti commits to $70M spend for a 10-year term with Telstra Wholesale for essential backhaul, duct
    and exchange access to support delivery of services following customer migration being completed
    - Forecast annual EBITDA contribution to Uniti of $21M, commencing from early January 2021 and
    potentially increasing post migration of assets and services
    - ~13% EPS accretive1 and increases FY21 pro forma EBITDA by more than 20%2 to $116M
    - Acquisition funded by mix of debt, underwritten equity placement and share purchase plan
    - Uniti’s net debt to FY21 pro forma EBITDA3 ~2.3 times ratio at completion

    16 December 2020: Uniti Group Limited (ASX:UWL) (Uniti) is pleased to announce that it has entered
    into a binding agreement to acquire certain fibre-to-the-premises (FTTP) assets owned by Telstra
    Corporation Ltd (ASX:TLS, Telstra) deployed to provide high speed broadband to the Telstra Velocity®
    estates and South Brisbane Exchange regions (Velocity). Telstra will become a Retail Service Provider
    (RSP) of the Uniti FTTP business (including the Velocity network), which recently adopted the OptiComm
    branding (following Uniti's acquisition of OptiComm Ltd).
    Detail is provided below regarding Velocity, Uniti’s strategic rationale, transaction specifics and funding.
    About Telstra Velocity®
    Velocity is Telstra’s optical fibre network that uses FTTP technology to deliver high speed broadband,
    phone and pay phone, subscription TV and free-to-air services amounting to approximately 55,000
    services, across 128 residential housing estates in all mainland Australian states as well as the South
    Brisbane Exchange region (a region previously serviced by Telstra copper before the sale of the
    exchange) currently serviced by FTTP networks. Approximately 68,000 premises are passed with the
    Velocity FTTP network in these estates and regions and Velocity is the sole FTTP network in the vast
    majority of these estates. Approximately 50,000 superfast broadband carriage services are active today

    courtesy of Bell Direct
    =======================================================================================================

    DYOR

    i hold TLS ( but am looking for a graceful exit )

    the fire sale continues

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