iiNet shareholders to vote on TPG takeover next month

Competition regulator decision on acquisition of iiNet due late August

A meeting of iiNet shareholders will vote next month on whether to accept TPG’s takeover bid, after a Federal Court hearing on Friday afternoon.

The Federal Court convened a meeting on the scheme for the morning of 27 July.

Even if a majority of iiNet’s shareholders back the move by TPG to acquire the ISP, the Australian Competition and Consumer Commission will still have to clear the deal.

"The ACCC’s preliminary view is that the acquisition of iiNet may lead to a substantial lessening of competition, potentially resulting in higher prices and/or degradation of the non-price offers available in the market, including customer service," said a statement of issues released last week by the competition watchdog.

The ACCC is calling for submissions on the document.

TPG said it “welcomes this next step in the ACCC approval process and, together with iiNet, will continue to engage closely with the ACCC as it works towards a final decision.”

TPG announced in March it would seek to acquire iiNet.

TPG had to fend off a rival bid by M2. A revised TPG offer has received unanimous support from iiNet's board.

The ACCC intends to announce a decision on the acquisition by 20 August.

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