Aussie Broadband (ASX:ABB) will dismiss court proceedings it launched against Superloop (ASX:SLC) challenging Superloop directors' notice for it to reduce its shareholdings to below 12%, according to a Thursday filing with the Australian bourse.

The company, which acquired a 19.9% stake in Superloop in February, has withdrawn its allegations against Superloop and its directors. The dismissal of the proceedings is subject to an agreement.

The company also plans to shoulder a portion of the cost incurred by Superloop and its directors, the filing said.

Aussie Broadband's shares slid almost 3% in recent Thursday trade.

Price (AUD): $3.49, Change: $-0.10, Percent Change: -2.78%