Shares in Amcom Telecommunications are soaring today after shareholders overwhelmingly voted yesterday in favour of a merger with Vocus Communications and against a blocking move by rival telco TPG.
The vote was just over the three-quarters required to get the merger approved. Total shares voted at a general meeting in Perth on Monday were 234.7 million, with 77.2% voting for and 22.8% against.
TPG had tried to sink the deal by buying 19.9% of Amcom without making a counter offer.
For the deal to go ahead, almost every share not held by TPG had to be cast in favour of the merger. When the votes were counted, 99.8% of of the non-TPG votes supported the merger.
“Amcom shareholders have turned out in force and had their say, with almost every shareholder that voted, other than TPG, voting in favour of the combination with Vocus,” says Amcom chairman Tony Grist.
“This shareholder vote is something of a landmark given TPG held 19.99% of Amcom and voted against the scheme.”
Amcom and Vocus together will have a market capitalisation of about $1.2 billion.
The merger must be now be approved by the Federal Court at a hearing in Perth next week.
Amcon shares are up more than 16% to $2.70.