iiNet backs sweetened TPG $1.56B offer

Company News

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) last week. 
 
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.