The Superloop Ltd (ASX: SLC) share price has been amongst the worst performers on the local market in morning trade.
At the time of writing the shares of the independent provider of connectivity services are down 9% to $1.75 but were as much as 13% lower at one stage.
Why is the Superloop share price sinking lower?
Investors have been selling Superloop's shares this morning after it provided an update on the proposal it received from QIC Private Capital.
For those that are unaware, on April 26 QIC Private Capital made a non-binding, conditional, and indicative proposal to acquire the company for $1.95 per share.
The indicative proposal included two alternative forms of consideration to Superloop shareholders: full cash or partial cash and partial scrip in a newly formed unlisted entity.
The Superloop board and its advisers determined that it was in the best interests of shareholders to grant QIC Private Capital a period of approximately three weeks to conduct due diligence on an exclusive basis.
With the two parties unable to agree to a transaction, they have decided to discontinue the period of exclusivity. No details have been provided in relation to why a deal was not reached or whether this is the end of talks completely.
Instead, Superloop has advised that it remains focused on executing its growth strategy across Australia, Singapore, and Hong Kong in order to realise the significant value of its Asia Pacific fibre infrastructure assets.
Superloop isn't the only share falling heavily on the ASX this morning. An earnings downgraded by personal care products company BWX Ltd (ASX: BWX) has led to its share price dropping 32% and the shares of Australia's oldest bank, Westpac Banking Corp (ASX: WBC), have tumbled 4% lower after trading ex-dividend for its fully franked 94 cents per share interim dividend this morning.
