Internet service provider TPG is planning to buy its rival iiNet for $1.4 billion.
Reports are circulating about the deal.
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.
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