Australian telecoms services provider M2 Telecommunications has agreed to acquire local rival Primus Telecom for A$192.4m (US$198.9m).
To fund the acquisition, M2 will launch a one-for-four rights offer, fully underwritten by Goldman Sachs, in order…
Australian telecoms services provider M2 Telecommunications has agreed to acquire local rival Primus Telecom for A$192.4m (US$198.9m).
To fund the acquisition, M2 will launch a one-for-four rights offer, fully underwritten by Goldman Sachs, in order to raise A$83.1m (US$86m). It also said it would secure a new A$182.5m (US$188.9m) senior facility to be provided by Westpac and Bankwest.
The company added that, as an interim measure, it has entered into a A$250m (US$258.8m) senior secured bridge financing facility, which is expected to remain undrawn pending completion of the entitlement offer and senior bank facility.
With the remaining cash, M2 said it will refinance part of its existing debt.
The acquisition of Primus, which had revenues of A$280.2m (US$290.2m) in 2011, is aimed at strengthening M2’s position in the country’s national broadband network (NBN) project.
Deal completion is scheduled for 1 June 2012.
In February last year, M2 acquired another rival, Clear Telecoms, for A$24.5m (US$24.6m).
