TPG Telecom Limited (ASX:TPM)
has sweetened its $1.4 billion takeover for iiNet Limited (ASX:IIN)
to $1.56 billion, which has since been backed by iiNet’s board.
TPG lobbed the original bid last month and a competing cash and scrip offer for iiNet was launched by M2 Group Limited (ASX:MTU)
iiNet’s board have unanimously recommended TPG’s latest offer under which its shareholders can receive value of at least $9.55 per iiNet share.
iiNet says the certain value of cash under the revised TPG offer is preferable on a risk adjusted basis to the inherently uncertain future value of a combined iiNet and M2 under the M2 proposal.
TPG Telecom increased its net profit by 18 per cent to $106.7 million in the first half of the 2015 financial year.