Menu
Soul/TPG buys Pipe Networks for $373m

Soul/TPG buys Pipe Networks for $373m

Transaction expected to be finalised by December 11

Telecoms operator, Soul/TPG (ASX: SOT), is set to acquire networking player, Pipe Networks (ASX: PWK).

Pipe sold 2.8 million shares to Soul/TPG at $6.30 apiece on November 9 and both companies have entered into a Merger Implementation Agreement. This will see Soul/TPG take on shares outstanding in Pipe for $6.30 per share, subject to approval by Pipe shareholders at a March 2010 meeting. The overall deal values Pipe's equity at $373 million.

Under the arrangement, Soul/TPG is acquiring Pipe's fibre optic network as well as its Pipe Pacific Cable (PPC-1)submarine cable system assets between Sydney and Guam.

The transaction is expected to be finalised by December 11 and confirmation of funding by the purchasing company to be received by December 18. In an ASX statement, Soul/TPG executive chairman, David Teoh, said the transaction will “position [the company] as a fully integrated telecommuniations company with a broad spectrum of offerings and a major role in Australia’s telecommunications industry”.

He highlighted synergies between the two organisations, along with Pipe’s international bandwidth, as competitive advantages, and said the deal offer a broader range of services to customers on both sides.

“Pipe’s extensive metropolitan dark fibre network will increase SPT’s capabilities as a data communications provider,” Teoh stated.

According to an ASX statement, Pipe’s board of directors have unanimously recommended the offer to shareholders. The statement said Soul/TPG offered shareholders a greater price per share than Pipe’s closing share price at any point since its listing.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags Soul TelecommunicationsTPGPipe Networks

Upcoming

Slideshows

IN PICTURES: VMworld 2015 Asia-Pacific and Japan party (+ 32 photos)

IN PICTURES: VMworld 2015 Asia-Pacific and Japan party (+ 32 photos)

VMware recently held an Asia-Pacific and Japan party for its partners in San Francisco following two days of keynotes and sessions. Whilst mingling and enjoying drinks and finger food, the partners were joined by VMware management who also took the opportunity to let their hair down to have some fun.

IN PICTURES: VMworld 2015 Asia-Pacific and Japan party (+ 32 photos)
IN PICTURES: VMworld 2015 sponsor and partner showcase (+41 photos)

IN PICTURES: VMworld 2015 sponsor and partner showcase (+41 photos)

VMware's sponsors and partners used the opportunity at VMworld 2015 to showcase some of their technologies. At an exhibition hall, these vendors educated those that popped by their stands on these solutions and addressed some of the issues surrounding mobility, datacentres, and the Cloud. SOme of the big names there included f5, Palo Alto Networks, HP, Intel, Samsung, and Symantec.

IN PICTURES: VMworld 2015 sponsor and partner showcase (+41 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments