Tax on Zayo spinoff limits its appeal

Article Excerpt

ZAYO GROUP HOLDINGS INC. $22 (New York symbol ZAYO; Manufacturing & Industry sector; Shares outstanding: 236.6 million; Market cap: $5.2 billion; Takeover Target Rating: Highest; No dividends paid; www.zayo.com) operates a fibre network across North America and Europe that stretches more than 209,215 kilometres. It is the largest independent fibre owner in North America. The company first offered its stock to the public in October 2014 at $19.00 a share. Zayo’s revenue jumped 93.3%, from $1.35 billion in 2015 to $2.60 billion in 2018 (fiscal years end June 30). Most of that growth is due to acquisitions; since 2007, the company has spent $6.7 billion buying 45 related firms. Zayo Group: Largest independent provider of communications infrastructure with 3,700 employees Its network connects 36,000 buildings in 403 markets Operates 50 data centres in North America and Europe Those include its 2016 purchase of Allstream from Manitoba Telecom Services (a recommendation of our Successful Investor newsletter prior to its takeover by BCE Inc.) for $465 million. The company’s losses improved from $0.66…

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