Telecommunications company, Pipe Networks, will be taken over by TPG Telecom under a $373.09 million deal.
Pipe shareholders accepted the offer after considering a bid for $6.30 per share. TPG requested a trading halt on March 12 prior to Pipe shareholders voting on the acquisition offer. As TPG emerged from the halt, shares peaked as high as $1.99, but had declined to $1.95 at time of publication.
To date, TPG has bought 2.8m shares, and recently made the offering of $6.30 per share for the rest of the company. In a previous statement, TPG executive chairman, David Teoh, said $6.30 per share was a fair price.
The acquisition will see TPG gain access to Pipe’s fibre optic network and Pipe Pacific Cable (PPC-1) submarine cable system assets between Sydney and Guam.
Many fellow ISPs claim TPG’s takeover of a wholesale telco provider would represent a conflict of interest and reduce competition among retail service providers.
The basis of the takeover arrangement is yet to be accepted by the Queensland Supreme Court on March 17.
TPG recently raised $70m to reduce company debt as prelude to the Pipe acquisition.