Soul/TPG lays down Pipe final offer

Soul/TPG lays down Pipe final offer

TPG will not offer a higher price, but the board recommends shareholders should approve it

Soul/TPG (ASX:SOT) is trying hard to convince Pipe Networks (ASX:PWK) shareholders the deal on the table is the best and final offer.

TPG has so far bought 2.8 million shares from Pipe and is offering $6.30 per share for the rest of the company.

The ISP merged with competitor, Soul, in 2008 and announced its intent to snap up wholesale networking player, Pipe late last year.

The overall deal values Pipe’s equity at $373 million and the Pipe board has recommended shareholders approve the scheme.

In a statement, TPG executive chairman, David Teoh, said the company considered $6.30 per share was a fair price and would not increase it.

Pipe’s fibre optic network and Pipe Pacific Cable (PPC-1) submarine cable system assets between Sydney and Guam will be transferred to TPG if the acquisition is given the green light.

ISP clients of the networking giant were none too pleased with the deal despite Pipe CEO, Bevan Slatthery’s insistence it will be business as usual for the company.

With many ISPs in direct competition with TPG, some have come out claiming the deal represents a conflict of interest and will reduce competition in the service provider space.

Last month, TPG (ASX: TPM) was set to raise $70 million in capital to reduce debt ahead of the acquisition.

The Pipe shareholders meeting is set to be held in Brisbane on March 12.

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Tags Pipe NetworksSoul/TPG

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