Ann: TPG to Acquire iiNet in a Recommended Transaction, page-50

The carrot in this deal for me is the mentiion of a dividend component. This makes it more appealing to SMSFs in the retirement phase because there is no tax payable on the 30% franking component. For instance if an SMSF owned 5000 shares which they bought at $8.50, they would make $500 by selling them for $8.60. Not a great incentive. But if $2.00 of the $8.50 is fully franked dividend, they will get a refund from the tax department when they file their tax return for around $3,000 (franked dividend of 10,000 x 30%) - making it a lot more appealing.

It would seem that IIN has a surplus of franking credits and distributing part of the payment as a fully franked dividend is how they can use them up. BHP did something similar a few years ago which I participated in. It's a matter of one's own tax situation to decide if these will be a worthwhile incentive to buy at today's price.