TPG places bid to buy IntraPower
- 14 July, 2011 16:00
TPG Telecom (ASX:TPM) has entered into a takeover bid agreement with ICT services provider, IntraPower (ASX:IPX).
Under the agreement IntraPower shareholders can elect to receive either $0.30 in cash; $0.15 in cash and 0.089 TPG shares per IntraPower share.
The all cash alternative values IntraPower’s shares at about $12.8 million.
IntraPower board of directors recommend shareholders accept the proposal unless a superior proposal is offered.
IntraPower directors Greg Kennish and Darc Rasmussen, have entered into pre-bid acceptance agreements over a portion of their respective shareholdings, giving TPG relevant interest in 19.9 per cent of IntraPower shares.
TPG executive chairman, David Teoh, said the transaction was a key step in its plans to widen its range of solutions to business, corporate and government customers.
“Following the expansion of its nationwide high-speed telecommunications infrastructure through the acquisition of Pipe Networks last year, TPG’s product set will be further enhanced by the addition of IntraPower’s TrustedCloud offering,” Teoh said. “An additional benefit of the acquisition will be the cost synergies the enlarged group will gain from network and datacentre integration.”
IntraPower chairman, Mike Ahern, said the proposal provided an opportunity for shareholders to realise their IntraPower investment at a price well above the prevailing market price.
IntraPower was trading at $0.29 at the time of publication.