Internet service provider iiNet Limited (ASX:IIN)
has backed a takeover offer from TPG Telecom Limited (ASX:TPM)
valuing the company at $1.4 billion.
The recommended transaction proposes for 6.25 per cent shareholder TPG to buy all the shares that it does not already own in iiNet for $8.60 per share.
iiNet shareholders on the register on March 16 will also remain entitled to and will receive a fully franked interim dividend of 10.5 cents per share.
iiNet chairman Michael Smith says the board viewed the offer as a significant reward for shareholders who have shown their faith in the company.
The proposal will be put to a shareholder vote in June and the transaction also remains subject to regulatory approval.
iiNet reported a net profit of $29.06 million in the first half of the 2015 financial year.