ASX-listed ISP, iiNet (ASX:IIN) has entered into a trading halt pending the announcement of the results from a scheme meeting held on July 27.
iiNet shareholders will be casting their vote on TPG’s takeover offer. iiNet directors have unanimously recommended 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.