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iiNet shareholders approve $1.56 billion TPG buy

iiNet shareholders approve $1.56 billion TPG buy

Still subject to ACCC and second court approval

iiNet shareholders (95 per cent) have voted in favour of TPG’s $1.56 billion takeover offer in a scheme meeting on July 27.

The acquisition is still subject to certain conditions including ACCC and a second court approval.

The ASX-listed ISP (ASX:IIN) entered into a trading halt pending the announcement of the results with iiNet directors unanimously recommending that all shareholders vote in favour of the Scheme unless a superior proposal is put forward.

"The takeover process we have been through over recent months demonstrates how strategically valuable iiNet has become to national players in the telecommunications sector as the industry heads towards an inevitable consolidation phase," iiNet chairman, Michael Smith, said in his address to the meeting.

"It's clear we have built a business with a brand, customer base and reputation for customer service that a number of key players in the industry would like to own."

In May, TPG submitted a counter proposal for iiNet, increasing its offer to $9.55 per iiNet share, incorporating $8.80 cash or 0.969 TPG shares plus a $0.75 special dividend.

The counter offer was made after M2 Group’s intentions to submit a rival bid for iiNet, following TPG's initial $1.4 billion all-cash takeover proposal it signed with the company in March.

The Australian Competition and Consumer Commission (ACCC) is also weighing on whether or not the acquisition will lessen competition in supplying retail fixed broadband services, and will defer its final decision until August 20.

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