Austar United Communications has launched an off-market takeover bid for struggling internet service provider eisa, valuing the company at around $24 million.
Under the deal announced this morning, Austar plans to acquire all of the ordinary shares in eisa for 20 cents each in cash, in addition to providing a $7.5 million short-term loan.
Eisa's shares were suspended from trading on June 2, following the collapse of its proposed acquisition of OzEmail and associated partnership deals with the likes of ANZ, Fairfax, Hastings Funds Management and Disney. Before suspension, eisa's shares had dropped as low as 22 cents.
Eisa executives admitted recently that the company had come to a crossroads with its future strategic direction, revealing at its annual shareholder meeting that it was in discussions with at least four players regarding the possibility of merging.
The ISP will re-list on the Australian Stock Exchange this morning at 11am.