Swoop Holdings Ltd Agrees $11M Melbourne Fibre Sale to Cut Debt
Swoop secures $11 million sale of Melbourne Fibre Project to refocus on core telco business
Swoop Holdings (ASX: SWP) has entered into a binding Share Sale Agreement dated 25 June 2026 to sell Luminet Fibre Pty Ltd, the entity behind its Melbourne Fibre Project, in a deal worth $11 million in cash plus reimbursement of certain recoverable project costs.
The buyer is Xenith IG Australia Holdings Pty Ltd, a wholly-owned subsidiary of Xenith Infrastructure Group, a Singapore-headquartered digital infrastructure developer with experience in fibre network assets across the Asia-Pacific region.
For Swoop, the divestment removes remaining capital expenditure and development obligations tied to completing the project, freeing management to prioritise its core consumer NBN and mobile virtual network operator (MVNO) business. Net proceeds are expected to be substantially applied towards reducing debt.
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Inside the transaction
The Share Sale Agreement covers the disposal of 100% of the shares of Luminet Fibre Pty Ltd, the owner of the Melbourne Fibre Project. The agreement is entered into by Swoop’s wholly-owned subsidiary, Anycast Holdings Pty Ltd, the shareholder of Luminet Fibre Pty Ltd.
The asset itself comprises a 282km fibre network currently under construction in Melbourne. The table below summarises the key terms and what each means for the Company.
| Deal Term | Detail | What It Means for Swoop |
|---|---|---|
| Buyer | Xenith IG Australia Holdings Pty Ltd (Xenith Infrastructure Group) | Experienced Asia-Pacific fibre operator |
| Cash consideration | $11 million on completion | Direct liquidity inflow |
| Additional consideration | Reimbursement of certain recoverable project costs | Recovers incurred spend |
| Asset | Luminet Fibre Pty Ltd, 282km Melbourne fibre network (under construction) | Non-core asset exit |
| Use of proceeds | Substantially applied to debt repayment | Strengthens balance sheet |
The SSA also contains standard protections for a transaction of this scale, including:
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Customary representations and warranties
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Indemnities
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Termination rights appropriate for a transaction of this nature
Why Swoop is exiting a non-core asset
The Company described the transaction as an attractive opportunity to realise value from a non-core asset while simplifying its operating profile. By stepping away from a capital-intensive fibre build, management can direct attention towards Swoop’s growing consumer NBN and MVNO telecommunications business.
The MVNO business itself received a significant structural boost just weeks earlier, with the TPG mobile partnership signed in June 2026 targeting a 50% gross margin improvement and growth from roughly 135,000 to more than 180,000 mobile subscribers by FY29.
Following completion, Swoop will have no further responsibility for the development, construction or operation of the Melbourne Fibre Project. The deal also removes the Company’s remaining capital expenditure commitments associated with the build.
From the announcement
“The transaction represents an attractive opportunity for Swoop to realise value from a non-core asset while simplifying the Company’s operating profile.”
The debt reduction angle adds a further balance-sheet benefit, with net proceeds expected to be applied towards repayment of debt facilities.
Understanding the deal: fibre infrastructure vs Swoop’s challenger telco model
The Melbourne Fibre Project sits squarely in this category as a network still under construction.
Swoop, by contrast, operates a challenger telco model. It delivers NBN broadband and mobile services, the latter through a mobile virtual network operator (MVNO) arrangement, to residential, business and wholesale customers. These services are provided via its dual brands, Swoop and Moose.
Divesting a capex-heavy build aligns the Company’s profile more closely with its value, reliability and service-focused growth strategy.
Completion conditions and what comes next
Completion remains subject to a limited number of conditions precedent customary for transactions of this nature, including approval from the Foreign Investment Review Board (FIRB) under the Foreign Acquisitions and Takeovers Act 1975 (Cth).
Subject to satisfaction of those conditions, completion is expected to occur in Q1 FY2027. The Company will provide an update to the market upon completion.
The path to completion can be summarised as follows:
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Satisfy conditions precedent (including FIRB approval)
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Complete the transaction, expected Q1 FY2027
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Receive $11 million cash plus recoverable cost reimbursement
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Apply net proceeds substantially to debt repayment
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Provide a market update on completion
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The investment takeaway
The divestment leaves Swoop with a cleaner operating profile, reduced debt and no remaining capital expenditure burden tied to the Melbourne Fibre Project. With management able to sharpen its focus on the core NBN and MVNO growth engine, the transaction marks a deliberate step towards simplifying the business, with the financial benefits to be realised upon completion in Q1 FY2027.
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