IiNet and TPG Telecom in $1.4 B Deal in Australia

Marcus Jacob
13 Mar, 2015
New York City

Australian market indexes closed down and the Aussie dollar lacked direction in moderate trading. For the week, the ASX 200 index declined 1.5%. Internet service provider, iiNet Limited agreed to be acquired by TPG Telecom at $1.4 billion valuation.

[R]5:30 PM Sydney – Australian market indexes closed down and the Aussie dollar lacked direction in moderate trading. For the week, the ASX 200 index declined 1.5%. Internet service provider, iiNet Limited agreed to be acquired by TPG Telecom at $1.4 billion valuation.[/R]

Market indexes in Sydney closed lower and failed to remain in the positive zone.

TPG and iiNet agreed to a buyout deal after months of speculation.

Australian dollar closed at 76.71 U.S. cents and in stock trading turnover declined to 727 million shares worth $4.4 billion.

ASX 200 Index slipped 35.70 or 0.6% to 5,814.50 and broader All Ordinaries Index decreased 28 to 5,788. For the week, ASX 200 dropped 1.5%.

In commodities trading, gold gained US$4 to US$1,159 an ounce and light crude oil fell 89 cents to US$49.13 a barrel.

Brent crude edged up 0.04 cents to close at US$57.12 a barrel.

Australian Stock Movers

Lynas Corporation Limited declined 3.9% to 0.049 cents after the rare earth mineral producer said revenues in the first-half ending in December surged 345.8% to $65.05 million from $14.59 million a year ago period.

Net loss in the period widened to $103.5 million compared to $59.3 million and diluted loss per share increased to 3.64 cents from 2.69 cents in the same period a year ago.

TPG Telecom Ltd surged 17.7% to $9.11 after the communication service provider agreed to acquire iiNet Ltd, the internet service provider in a deal valuing at $1.4 billion or $8.60 per iiNet share and funded from the new debt facilities.

The transaction is expected to be close in July 2015.

Shares of iiNet Limited soared 24.8% to $8.50.

Worleyparsons Limited climbed 3.4% to $10.12 after the engineering services provider secured project-management and engineering-services contract for Australian subsidiary of Switzerland-based Viva Energy Australia’s Geelong refinery in Victoria.