TPG iiNet M2 Merger

TPG offer for iiNet outbid by M2

We have previously disclosed the details of TPG offer for iiNet at $1.4b and the implications that TPG would have had given the legal mine field iiNet is currently fighting within with the Dallas Buyers Club LLC.

Now M2 is in with a bid of above $1.8b. M2, which currently owns Dodo amongst other strategic investments, has made a non-binding offer to iiNet including two board seats, in exchange iiNet shareholders would own 42 per cent of the newly formed group.

Shares in iiNet soared $1.40, to $10.00 in response to M2’s announcement.

Whilst the stock looks exciting we are not certain who will win the bid and what impact the Dallas Buyers Club lawsuit will have on the bottom line at iiNet.

We would consider given M2 larger size investments and the 2 board seast offer to be more valuable to iiNet’s management team and legacy as they intent to retain the brand.

There is speculation circling that TPG is likely to pull their offer before standing any chance of being viewed as the loser of this battle.

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