Telecommunications company Spark New Zealand (ASX:SPK) has filed a notice of intention to acquire a smaller telco, TeamTalk, at NZ$0.80 cents per share.
Spark says this acquisition consistent with its strategy to achieve greater control of the end-to-end customer experience for its business customers.
On Friday, 3 February 2017, TeamTalk shares closed at 45 cents, but have since rocketed 66.67% to 75 cents.
TeamTalk is made up of three operating businesses. They are: TeamTalk (which provides mobile radio services), CityLink (who is a provider of metro fibre services primarily in the Wellington CBD), and Farmside (an internet service provider focused on the rural market).
Spark New Zealand posted a net profit of $352.8 million at 30 June 2016.