Now for the ACCC’s tick and the $1.56 billion takeover of iiNet (IIN) by TPG (TPM) will be complete.
That’s after shareholders in iiNet yesterday approved the TPG offer, despite a noisy campaign against the deal by some former managers and current shareholders.
Yesterday’s vote at a meeting in Perth saw a quick and overwhelming approval of the TPG offer, which if the ACCC signs off on it, will create Australia’s second biggest provider of fixed-line internet services.
Opposition to the deal came from iiNet’s founder, Michael Malone and some institutional shareholders, such as BT Investment and Merlon Capital which was the noisiest of them all.
Despite their urgings, TPG won the day with 100.6 million votes in favour and only 5.2 million against. Almost 94% of proxies were in favour of the deal, according to a statement to the ASX yesterday afternoon from iiNet.
Media reports say Mr Malone voted for the TPG offer yesterday.
TPG is offering cash, or a combination of cash and TPG shares, for each iiNet share.
The cash option is $8.80 in cash plus a special dividend of up to 75 cents a share for each iiNet share, while the alternative offers 0.5533 new TPG shares, $3.77 cash, and the 75 cent dividend.
The deal now hinges on the greenlight from the ACCC which is due to release a decision on August 20.
According to media reports yesterday in the wake of the vote, telco industry analysts expect the Commission to approve TPG’s takeover, perhaps with some conditions.
Once approval is given both parties will then immediately call for a court hearing to ratify the merger and finalise the deal.
Once that is held and the vote happens, TPG will have 1.7 million broadband subscribers, behind Telstra’s 3 million accounts but ahead of Singtel-Optus’ 1.03 million users with M2 Group (which tried to mount a counter offer) in fourth.
iiNet said yesterday the scheme meeting had been (for the moment) set down for Friday August 20, the day after the ACCC decision is expected.
“If the Scheme is approved by the ACCC and the Federal Court of Australia, iiNet shareholders will receive the Scheme Consideration on the Implementation Date, which is expected to be 7 September 2015," iiNet directors told the ASX.
iiNet shares rose 0.3% on the ASX yesterday at $9.40, while TPG shares rose 0.8% to $9.22.
