Shareholders of internet service provider iiNet Ltd
(ASX:IIN) have given the green light to the company’s $60 million acquisition of AAPT’s consumer division.
The purchase will increase iiNet’s customer base to 1.3 million including 650,000 DSL customers, the second largest in Australia.
CEO Michael Malone says the overwhelming support from shareholders is a reflection of the compelling strategic rationale for the acquisition and confidence in the company.
The acquisition has been funded entirely from cash on hand and an extension of existing debt facilities, and is expected to be earnings per share accretive in fiscal 2011 and beyond.
iiNet says it will update the market on its trading performance at its upcoming annual general meeting.
iiNet reported earnings of $34.55 million for the 2010 fiscal year.
