M2's competing proposal was not intended for public release. It has submitted a non-binding, incomplete and confidential competing proposal to acquire 100 per cent of the issues shares in iiNet.
The proposal is currently with the iiNet board for consideration.
M2 values its competing proposal at approximately $11.37 per iiNet share (based on M2's closing price on April 24, 2015, of $11.52).
It comprises of $9.25 worth of M2 shares (based on 0.803 M2 shares for each iiNet share), $0.75 cash in the form of a special dividend and $1.37 for the value of estimated synergies that would accrue to iiNet shareholders, who will own about 42 per cent of the enlarged M2 Group.
M2 intends to operate iiNet as a standalone brand that would be nurtured and grown under the M2 umbrella.
It has also has extended an offer to two iiNet directors to join the M2 board if the transaction is implemented.
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According to a statement, it fully recognises the value of different brand strategies and intends to leverage the strength of the iiNet brand and its customer ethos.
"M2 has a strong track record of acquiring and integrating businesses including Commander, Primus and Dodo.
"In each of those cases, M2 has maintained the presence of each of those brands in their respective markets, has grown each brand's customer base and product offering, and has extracted meaningful synergies along the way."
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