TPG is set to become Australia’s second largest ISP after Telstra after iiNet shareholders have approved a $1.56 billion takeover by the Sydney based Company.
At a shareholder meeting in Perth this morning the TPG
takeover offer won the votes, with 100.6 million in favour and 5.2 million
against, 93% per cent of proxies were in favour of the deal.
The deal went ahead despite several people voicing their
objection to the proposed takeover which will see Optus relegated into the #3
slot in Australia.
TPG will now become a telecommunications powerhouse with 1.7
million broadband subscribers and the power to reshape the Australian internet
market.
This places it behind Telstra’s 3 million accounts and ahead
of Singtel-Optus’ 1.03 million users with M2 Group a distant fourth.
Objections to the takeover came from Merlon Capital’s Hamish
Carlisle and iiNet’s founder Michael Malone along with several major
institutional shareholders including BT Investment Management, the3 original
offer was based on $1.4 billion all-cash bid that was revealed back in March.
The Australian Competition and Consumer Commission who is
still investigating the deal is set to deliver their verdict on August 20th
with insiders tipping a green light for the deal
Fairfax Media said that once approval is given both parties
will then immediately call for a court hearing to ratify the merger and
finalise the deal.
IiNet chair Michael
Smith had warned that any move to reject the deal would most likely result in
the company’s share price collapsing.
The Australian newspaper said that the Australian
Competition & Consumer Commission has been studying the impact the deal
could have on the competitive landscape of the $40 billion a year telecoms
sector.
ACCC chairman Rod Sims said he was aware of the criticisms
about the proposed deal from some segments of the telco market, but he said the
ACCC would not rush into handing down its decision before its scheduled release
date.
“We are cognisant of commercial pressures out there, but
this is a big deal and it will permanently change the landscape so we have to
fulfil our duties and assess it probably,” Mr Sims said.
