[AusNOG] Vocus to build Australia Singapore Cable

[Luke Mackinnon]

Your right… Vocus has always been a good negotiator… we did not want to pay for something if it presented no value to us. 

ASC is not a recent development. The Nextgen folks had been working on this project since 2010. In that time they have complete all of the work that effectively handed Vocus a “shovel ready” project. 

The reason ASC has such a massive lead over the competition is because we have a mature project with all permits and partnerships in place in all jurisdictions and importantly a compete Marine Survey. These activities cost money, lots of it. Its only fair that Vocus pays for it, but of course we only wanted to once/if we decided to proceed with the project….. clearly we are proceeding. ;)

Cheers,
Luke

> On 6 Dec. 2016, at 10:24 pm, Brad Peczka <brad at bradpeczka.com> wrote:
> 
>> I'm curious what the "Ontario Teachers Pension Fund" is bringing to the party to earn US$20m.
> 
> ..a good set of negotiators?
> 
> From the Vocus announcement on the Nextgen takeover (https://www.vocus.com.au/investors/asx-announcements/ASX-VOC-797504.pdf) - Vocus paid nothing upfront for Nextgen's share of ASC, and instead only paid if construction went ahead (hence the US$20m). 
> 
> Not a bad hedge on the part of Vocus, given that if APX-West or Trident (or both) had have beaten them out of the gate, then it's unlikely that construction of ASC would have proceeded.
> 
> Regards,
> -Brad.
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