Ann: TPG to Acquire iiNet in a Recommended Transaction, page-63

I think maybe your bias and wishful thinking is at work here.

Why would David Teoh, who with his wife, owns ~37% of the company want to dilute his holdings by selling equity to someone at below market price?

Ever since acquiring PIPE networks and generating strong free cash flow which enabled him to cease the DRP, Teoh's shown a penchant for using debt to fund acquisitons, doubling up as a tax shield reducing profits and therefore income tax payable.

But, like you I'm not concerned about TPG debt levels at all, so why would he need to raise equity?

My calculations have TPG with about $200 million debt on their balance sheet now. Add another $1.4 billion to bring it up to $1.6 billion.

When he unlocks the economies of scale from iiNet by using infrastructure TPG own, he can generate another $200 million free cash flow giving combined free cash flow of $400 million+.

I believe these numbers are conservative, because I expect them to be better. 3-4 years to pay off $1.6 billion, then that $200 million free cash flow will be flowing into the coffers of shareholders to be reinvested in acquiring VOC/AMM or something similar, and/or being paid out as big dividends.

This is truly a beautifully run company throwing off massive free cash flow.