M2 group will release over 15 million shares from voluntary escrow on 1 May 2014. The shares were issued almost one year ago as part of consideration given to vendors following M2’s purchase of Eftel and Dodo Australia.
The shares were placed in escrow for a twelve month period on 1 May 2013. Restrictions were placed on vendors as a result. Vendors were not allowed to sell, transfer or dispose of their shares for 12 months.
M2 posted record profit in the first half of this financial year and at the same time expanded its NBN footprint to 33 points of interconnect (POIs) nationally.
There will be a number of restrictions that will remain for 24 months after May 1. Vendors will not be able to deal in shares in any off-market transactions with excluded parties or increase aggregate shareholdings in M2 above 9.9 per cent. Vendors will also be excluded from voting in favour of any potential takeover bid, scheme of arrangement or shareholder resolution publicly recommended by M2's board.