iiNet takes a sweetened $1.57 billion bid from TPG

iiNet marketing material.

iiNet has taken an improved $1.57 billion bid from TPG which will create a major competitor to the big two Australian telcos, Telstra and Optus.

The deal pushes aside a $1.6 billion, all shares offer from M2. However, this is valued at $9.37 to $9.67, depending on the share price.

The TPG’s latest offer of $9.55 a share, in either cash or shares, is 11% higher than its initial $8.60.

A combined TPG iiNet would have TPG Telecom will have 1.7 million customers and revenue of $2.3 billion.

TPG also gets a deep well of quality customers and a top shelf marketing machine in iiNet. Those 1.7 million combined customers are retail fixed-line internet subscribers, a number which would be second only to Telstra’s 3 million fixed broadband user base.