Australian ISP TPG Telecom has formally launched its A$1.56bn (US$1.2bn) takeover offer for smaller player iiNet.
The deal is about A$500m more than TPG was first looking to pay, as reported last month, thanks to a competing bid from rival ISP M2…
Australian ISP TPG Telecom has formally launched its A$1.56bn (US$1.2bn) takeover offer for smaller player iiNet.
The deal is about A$500m more than TPG was first looking to pay, as reported last month, thanks to a competing bid from rival ISP M2 Group that has now been withdrawn.
iiNet’s board recommended TPG’s latest offer in early May, giving its backing to a A$9.55 per share price that incorporates a A$0.75 special dividend.
The scheme of arrangement also includes a A$8.80 cash or scrip component, giving shareholders the option to receive 0.969 TPG shares per iiNet share, subject to a cap of about 27.5 million TPG shares.
A shareholder meeting has been scheduled for 27 July to vote on the scheme of arrangement, while a 21 July deadline has been set for the TPG share election.
Michael Smith, iiNet’s chairman, said: “The $9.55 headline price is close to the top of its valuation range.
“Entering a competitive bid scenario increased the value our investors can realise, in part by having a higher portion of expected future synergies paid to our shareholders.”
The deal will create Australia’s second-largest fixed line provider behind incumbent telco Telstra.
TPG is advised by Macquarie Capital, and iiNet by Azure Capital.
