iiNet share election scaled back

23/07/2015 - 14:51

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iiNet shareholders have shown their continued interest in the business, with a large number choosing to take TPG’s share offer rather than cash.

iiNet share election scaled back

iiNet shareholders have shown their continued interest in the business, with a large number choosing to take TPG’s share offer rather than cash.

Share elections in the TPG takeover of iiNet have been scaled back, iiNet revealed today.

Share elections had been capped at a maximum of just over 27.5 million new TPG shares during the election period, which ended on Tuesday, but iiNet received valid share elections equivalent to 48.2 million TPG shares.

This corresponds to roughly 30% of the iiNet shares currently on issue.

The share election’s scale back means that any iiNet shareholder who holds fewer than 97 iiNet shares, and thus would have received fewer than the 54 TPG shares, will be deemed instead to have made a cash election.

All those who chose to make a cash election, or who will be forced to until the scale back, will receive $9.55 for each iiNet share, rather than the 0.5533 TPG shares and $3.77 a share yielded by a share election.

iiNet shares were today down 0.4 per cent to $9.385 a share, while TPG shares were up 1.6 per cent to $9.21

CORRECTION: This article previously made the incorrect statement that more than half of iiNet shares had taken the share election offer, a mistake due to erroneously calculating the number of iiNet share elections using the new scaled back 0.5533 ratio of TPG shares to be given for each iiNet share rather than the original 0.969 ratio as was published in the Scheme Booklet of June 15.

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