Expert rules iiNet takeover fair

15/06/2015 - 15:38

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iiNet chairman Michael Smith has welcomed an independent expert's review of TPG Telecom's proposed $1.6 billion takeover of the Subiaco-based internet services provider.

Expert rules iiNet takeover fair
iiNet chairman Michael Smith.

iiNet chairman Michael Smith has welcomed an independent expert's review of TPG Telecom's proposed $1.6 billion takeover of the Subiaco-based internet services provider.

"This is an offer that the board is very happy to present to shareholders for their approval, and represents excellent value for our investors," Mr Smith said.

"The independent expert has confirmed that the value offered for iiNet takes into account both a control premium and a substantial share of future expected synergies. The $9.55 headline price is close to the top of its valuation range.”

The independent expert assessed the value of iiNet shares to be between $8.90 and $9.75 per share, comfortably within TPG's offer of $9.55 cash alternative, and $9.23 to $9.71 for the share alternative.

iiNet directors have unanimously recommend that all shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert, Lonergan Edwards & Associates, maintaining its conclusion that the scheme is in the best interests of iiNet shareholders.

iiNet shares closed 0.2 per cent higher to $9.58 per share.

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