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Greed. Is. Good.
May. 31st, 2006 04:01 pmThe corporate wheeling and dealing going on in the ISP / Telco industry at the moment is quite impressive.
iiNet (IIN) halted trading in mid April (share price was at $1.69), pending announcements.
In mid May, iiNet announced a significant earnings downgrade (from 40 Million to 25 Million).
In late May, iiNet announced a stratgic alliance with Powertel, where PowerTel injected $14 million dollars in return receiving shares to the tune of 15% of the company (at 85c per share), a seat on the board of directors, and exclusive wholesale access to iiNet's DSLAM network.
iiNet started trading in late May (this Monday), with the share price varying between 67c and 96c. Tuesday saw it stay in the 90c mark, and Wednesday saw a peak of about $1.08 before dropping back to 90c
Amcom (AMM) announced today (Wednesday) that they'd acquired 19.97% (at an average price of 83c - 84c per share) of iiNet, and wanted two seats on the board. They'd funded this via a loan from Futuris (FCL) who own a 30% stake in Amcom. Amcom intend to issue shares to pay back the loan.
Very very interesting.
So after the Powertel share issue, key ownership in iiNet will look like:
18% Amcom
15% MM (iiNet Founder / MD)
15% PowerTel
Powertel get exclusive wholesale access to the DSLAM network, which will be a thing for them, allowing them to sell higher speed accounts. iiNet get cash (possibly for funding more DSLAM rollouts?) and higher utilisation of their DSL ports, resulting in quicker payback, and more sites being viable for builds.
I'm not so sure what Amcom get out of it. They claim to hope to influence iiNet to use their fibre for transmission, but thus far (IMO) their transmission product has been below par in terms of technical implementation.
20% is the 'magic' number at which stage Amcom would have to announce a takeover bid - be it friendly or hostile. They've obviously stopped short for a reason - possibly to assess the reaction.
Could they get 50% of the shares if they tried? Possibly. They'd need to ally with PowerTel though, or pay an awful lot for shares on the market.
If they put in a takeover bid, all staff options become available for exercise immediately - which could sway a vote one way or the other.
Interesting times ahead!
iiNet (IIN) halted trading in mid April (share price was at $1.69), pending announcements.
In mid May, iiNet announced a significant earnings downgrade (from 40 Million to 25 Million).
In late May, iiNet announced a stratgic alliance with Powertel, where PowerTel injected $14 million dollars in return receiving shares to the tune of 15% of the company (at 85c per share), a seat on the board of directors, and exclusive wholesale access to iiNet's DSLAM network.
iiNet started trading in late May (this Monday), with the share price varying between 67c and 96c. Tuesday saw it stay in the 90c mark, and Wednesday saw a peak of about $1.08 before dropping back to 90c
Amcom (AMM) announced today (Wednesday) that they'd acquired 19.97% (at an average price of 83c - 84c per share) of iiNet, and wanted two seats on the board. They'd funded this via a loan from Futuris (FCL) who own a 30% stake in Amcom. Amcom intend to issue shares to pay back the loan.
Very very interesting.
So after the Powertel share issue, key ownership in iiNet will look like:
18% Amcom
15% MM (iiNet Founder / MD)
15% PowerTel
Powertel get exclusive wholesale access to the DSLAM network, which will be a thing for them, allowing them to sell higher speed accounts. iiNet get cash (possibly for funding more DSLAM rollouts?) and higher utilisation of their DSL ports, resulting in quicker payback, and more sites being viable for builds.
I'm not so sure what Amcom get out of it. They claim to hope to influence iiNet to use their fibre for transmission, but thus far (IMO) their transmission product has been below par in terms of technical implementation.
20% is the 'magic' number at which stage Amcom would have to announce a takeover bid - be it friendly or hostile. They've obviously stopped short for a reason - possibly to assess the reaction.
Could they get 50% of the shares if they tried? Possibly. They'd need to ally with PowerTel though, or pay an awful lot for shares on the market.
If they put in a takeover bid, all staff options become available for exercise immediately - which could sway a vote one way or the other.
Interesting times ahead!
