iiNet accepts TPG’s takeover bid
Internet provider iiNet has accepted an enhanced takeover bid of $1.24 billion (A$1.56 billion) from TPG Telecom.
The move comes after rival Australian operator M2 launched a counter bid to purchase iiNet in an all-share offer worth $1.3 billion (A$1.6 billion) in April 2015. M2 offered 0.803 of its shares per iiNet share, including a A$0.75 special dividend. The company said it reserves the right to submit another offer.
Michael Smith, chairman of iiNet, said the alternative bid from TPG offers more certainty for shareholders.
"The board has weighed up both offers, and given careful consideration to the merits of a primarily cash-based offer to one which predominantly comprised scrip. We believe the revised cash offer of A$9.55 from TPG is favourable to M2's predominantly scrip offer," said Smith.
TPG’s latest proposal raises its offer to A$9.55 per iiNet share, with a A$0.75 special dividend. Under the offer, iiNet shareholders will also have the option to receive cash or TPG shares.
Under the shares option, shareholders will receive 0.969 TPG shares for each iiNet share, with a cap of 27.5 million total TPG shares to be handed out. TPG originally offered to purchase iiNet for $1.1 billion (A$1.4 billion) in March 2015, with shares values at $8.60 each.