Australia's TPG Telecom to buy local rival iiNet for US$1.08b

[SYDNEY] Australia's TPG Telecom Ltd on Friday said it will buy domestic Internet service provider iiNet for A$1.4 billion (S$1.49 billion) to boost its broadband business.

TPG Telecom, which already holds a 6.25 per cent stake in iiNet, will pay A$8.60 per iiNet share, a 26.3 per cent premium on Thursday's closing price. "The Board views this as a significant reward for shareholders," iiNet Chairman Michael Smith said in a statement.

The combined business will provide broadband services to over 1.7 million subscribers.

REUTERS