Regent Logo

Mergers and Acquistions News

Categories: Telecoms

December 8th 2008, 16:20PM

M2 Telecommunications and People Telecom have reached an agreement which will see the former acquire 100 per cent of the latter.

The two Australian firms have entered in to an agreement which will see M2 pay around Aus$17 million (£7.6 million) to acquire its rival.

Under the terms of the deal, investors will receive 0.0916 M2 shares for every one People share, as well 0.6886 cents in cash.

A further payment of up to 0.344 cents per People share will be paid, depending on the firm's net cash position one week before a meeting to decide if the deal should go ahead.

Vaughan Bowen, managing director and chief executive officer of M2, said: "Bringing People into the M2 Group is both strategic and logical, in that it adds considerable additional scale to the combined group together with complementary capabilities and marketing channels."

Shareholders will meet to vote on the matter in March 2009, with the firm's directors recommending they approve it.

Last week it was revealed that Research in Motion is set to make a C$66 million (£36 million) bid for encryption software firm Certicom after talks about a friendly deal between the two firms broke down.ADNFCR-1833-ID-18918103-ADNFCR

 

Related News