TPG to buy iiNet for $1.4 billion
TPG will acquire 100% of iiNet for AUD$1.4 billion according to a joint announcement made by the pair of Australian internet service providers (ISP) made this morning. The move would see the two combine as Australia's second largest ISP, overtaking Optus.
"iiNet are TPG are highly complementary businesses in terms of geographic presence, market segments and corporate customer base," said David Teoh, TPG's Executive Chairman and CEO, in a statement to the ASX. "The combined businesses will provide broadband services to over 1.7 million subscribers and will be well positioned to deliver scale benefits in an NBN environment."
iiNet shareholders will vote on the purchase at the company's annual general meeting in June. The iiNet board is advising shareholders to vote in favour of the move. The acquisition will be implemented in July, subject to shareholder approval.