iiNet shareholders have grabbed the $1.56 billion offer from TPG Telecom

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Australia’s third telco player and the second largest broadband supplier is almost a reality after shareholders of iiNet voted in favour of a $1.56 billion takeover from TPG Telecom.

The combined companies will have 1.7 million customers, revenue of $2.3 billion and staff of about 5,200.

Those 1.7 million combined customers are retail fixed-line internet subscribers, a number which is second only to Telstra’s 3 million fixed broadband user base.

TPG offered $9.55 for each iiNet share, made up of $8.80 cash or 0.969 TPG shares, plus a 75 cent special dividend.

The deal went through several offers starting at $1.4 billion, and a counter bid by M2, before the board and shareholders approved the current $1.56 billion.

The ACCC (Australian Competition and Consumer Commission) is expected to make its final decision on August 20 on whether to approve the takeover.

iiNet shares are up 0.85% to $9.37. TPG is up 0.66% to $9.20.

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