M2 announces competing offer for iiNet
TPG announced last month that it would acquire iiNet for $8.60 per share, in a transaction valued at $1.4 billion.
Under M2's proposal, shareholders would receive 0.803 M2 shares per iiNet share, plus $0.75 cash per iiNet share as a dividend.
M2 said it intends to operate iiNet as a standalone brand that would be "nurtured and grown" under the M2 umbrella.
"M2 fully recognises the value of different brand strategies and intends to leverage the strengthen of the iiNet brand and its customer ethos," M2 said in an ASX statement.
M2 highlighted its track record of acquiring and integrating businesses such as 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 with the way. M2 expects to achieve a similar result with iiNet," the company said.
Read more:Netflix backtracks on unmetering deals
M2 said it could achieve run-rate EBITDA of around $60 million per annum, representing around 3.5 per cent of M2 and iiNet's combined cost of goods sold and sales, and general and administrative expenses.
Follow CIO Australia on Twitter and Like us on Facebook... Twitter: @CIO_Australia, Facebook: CIO Australia, or take part in the CIO conversation on LinkedIn: CIO Australia
Follow Byron Connolly on Twitter:@ByronConnolly
Read more:Metadata regime to spur speculative invoicing, say Greens
Read more:Dallas Buyers Club granted discovery order