Perth-based internet service provider iiNet has appointed Amcom Telecommunications Ltd chairman Tony Grist to its board after Amcom acquired 19.96 per cent of company stock in May this year.
The acquisition was just under the threshold which would require a takeover bid, and was funded in part by Futuris Corp Ltd, a 30 per cent shareholder in Amcom.
As reported in WA Business News at the time, Futuris has previously played a patient game as an investor, holding significant stakes around the 15-20 per cent level in various companies that were considered targets for a takeover or merger.
However Amcom managing director Eddy Lee played down talks of a takeover, saying that he was more interested in negotiating an agreement to supply Amcom fibre networks to the company.
iiNet has one year left of a contract with Telstra in Western Australia, whereas the company's east coast networks are provided by NSW-based telecommunications services company PowerTel Ltd.
iiNet appointed PowerTel's managing director Peter Broad, as a non-executive director last month, after iiNet placed 12.6 million shares, or a 10.3 per cent holding, with the company during its May revenue raising.
A statement issued by iiNet this morning said that Mr Grist's corporate and telecommunications industry backgroups would be a valuable addition to the board.