Updated: Vocus and Amcom enter trading halt
- 15 June, 2015 10:29
Vocus Communications and Amcom Telecommunications have entered into a trading halt on the ASX pending the outcome of the shareholder vote in the proposed merger between the two companies.
The trading halt will remain in place until either company announces the results of the Scheme Meeting or when trading commences on June 17.
TPG has expressed its disapproval of the merger, steadily increasing its holding in Amcom to about 19.9 per cent in a bid to vote against the merger. But it had no intention of putting forward a counter proposal.
In his Scheme Meeting address, Amcom chairman, Tony Grist, said every shareholder vote was crucial.
"I strongly encourage all Amcom shareholders to cast their vote in relation to the scheme, so it has a stronger chance of succeeding," Grist said. "If the Scheme is not approved, the Scheme will not proceed and Amcom will continue as a standalone entity listed on the ASX."
TPG is a long standing shareholder of Amcom and stated that it supported the continued operation of Amcom as a standalone business under the stewardship of the current board of directors and management team.
Despite this, Amcom directors see the acquisition by Vocus as highly complementary and it will continue to recommend to shareholders that they vote in favour of the Scheme in the absence of a superior proposal.