Narrow Moats to Merge as TPG Telecom Makes an AUD 8.60 per Share Cash Bid for iiNet

TPG Telecom has announced a proposal to acquire iiNet. This will be structured as a scheme of arrangement with an expected implementation date in mid July 2015. TPG Telecom will pay AUD 8.60 cash per share, which may be altered if iiNet pays a material fully-franked special dividend on or shortly before the implementation date of the scheme, subject to obtaining a favourable ruling from the Australian Taxation Office. iiNet's board of directors has unanimously recommended the scheme and intend to vote their shares in favour of the proposed scheme, in the absence of a superior proposal. TPG Telecom currently has a 6% stake in iiNet.