Home > Latest News > Optus Set To Be Pushed To #3 Slot After TPG Gets Voters Nod To Takeover iiNet

Optus Set To Be Pushed To #3 Slot After TPG Gets Voters Nod To Takeover iiNet

By David Richards| 27 Jul 2015


	At a shareholder meeting in Perth this morning the TPG takeover offer won the votes, with 100.6 million in favour and 5.2 million against, 93% per cent of proxies were in favour of the deal. The deal went ahead despite several people voicing their objection to the proposed takeover which will see Optus relegated into the #3 slot in Australia. TPG will now become a telecommunications powerhouse with 1.7 million broadband subscribers and the power to reshape the Australian internet market. This places it behind Telstra’s 3 million accounts and ahead of Singtel-Optus’ 1.03 million users with M2 Group a distant fourth. Objections to the takeover came from Merlon Capital’s Hamish Carlisle and iiNet’s founder Michael Malone along with several major institutional shareholders including BT Investment Management, the3 original offer was based on $1.4 billion all-cash bid that was revealed back in March. The Australian Competition and Consumer Commission who is still investigating the deal is set to deliver their verdict on August 20th with insiders tipping a green light for the deal Fairfax Media said that once approval is given both parties will then immediately call for a court hearing to ratify the merger and finalise the deal. IiNet chair Michael Smith had warned that any move to reject the deal would most likely result in the company’s share price collapsing. The Australian newspaper said that the Australian Competition & Consumer Commission has been studying the impact the deal could have on the competitive landscape of the $40 billion a year telecoms sector. ACCC chairman Rod Sims said he was aware of the criticisms about the proposed deal from some segments of the telco market, but he said the ACCC would not rush into handing down its decision before its scheduled release date. “We are cognisant of commercial pressures out there, but this is a big deal and it will permanently change the landscape so we have to fulfil our duties and assess it probably,” Mr Sims said.

About Post Author

David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.