TPG to buy iiNet in $1.4b takeover deal By business reporter...

TPG to buy iiNet in $1.4b takeover deal

By business reporter Michael Janda
Updated 2 minutes ago
PHOTO: TPG is paying $8.60 a share for the iiNet stock it does not already own.(www.iinet.net.au)
MAP: Australia
Internet service provider TPG is planning to buy its rival iiNet for $1.4 billion.
In an announcement to the stock exchange, TPG said it will pay $8.60 a share and iiNet shareholders will also be entitled to the company's latest 10.5 cent dividend.
Under the deal, iiNet may also pay a special dividend, subject to a favourable ruling by the Tax Office, however the cash purchase payment of $8.60 a share would be reduced by the amount of any such dividend.
The takeover target's board has unanimously recommended the deal, which is a significant premium on the $6.81 closing price yesterday.
The share price of iiNet has run up 6.4 per cent over the past three days after a 3.2 per cent slide on Monday, and are up from a recent low of $6.17 on February 24.
However, iiNet's shares had slumped considerably, from a high of $8.40 in August, to reach that low.
TPG already owned 6.25 per cent of iiNet.
More to come.

http://www.abc.net.au/news/2015-03-13/tpg-to-buy-iinet-in-takeover-deal/6312910