Singtel Optus’ acquisition of virtual mobile network operator Amaysim has cleared a major hurdle after shareholders voted overwhelmingly in favour of the $250 million deal.
Amaysim shareholders voted 72 per cent in favour of the takeover at an extraordinary general meeting on Thursday, paving the way for the deal to be completed in early February.
Shareholders could receive payment for their shares within five days of the transaction being completed under an offer by fund manager Geoff Wilson’s WAM Capital to buy 100 per cent of Amaysim’s shares if a sale went ahead.
The firm, which revised its offer this week, will give investors one WAM share for every 2.675 Amaysim shares, $0.70 per Amaysim share or a combination of shares and cash. The Amaysim board has unanimously recommended shareholders accept the WAM offer.
Amaysim chief executive and founder Peter O’Connell said the acquisition marked the next chapter for the company.
“Optus is inheriting an incredibly talented team, who have built Australia’s largest mobile virtual network operator with an enviable net promote score and amazing culture.
“Now, supported by Optus, I am looking forward to seeing Amaysim continue to deliver value to our customers and to reach new heights,” he said.
An Optus spokesperson said it was a great outcome. “Optus is thrilled that Amaysim’s shareholders have said ‘yes’ to our proposal.”
Mr O’Connell said the increasingly competitive market was one factor the company had taken into account when considering the Optus offer. “We consider that the sale of the business will reduce our exposure to this increasingly competitive market where the marketing budgets of the network carriers will continue to outpace ours,” he said.
In the last 12 months Optus has launched a new virtual low-budget product called Gomo, while TPG Telecom revealed plans to create its own digital-only mobile offering, Felix, late last year. Telstra has been operating its own budget brand, Belong, since 2013.
Optus chief executive Kelly Bayer Rosmarin said at the time of the bid proposal in early November that buying Amaysim would add an extra 1.1 million mobile accounts to Optus’s customer base.
Major shareholder German firm TGV disclosed earlier this week its intention to throw its stake – almost 20 per cent – behind the WAN offer and accept the scrip and cash takeover but the intention of other shareholders Challenger (5.5 per cent), Merlon Capital Partners (5.5 per cent) and the University of Notre Dame du Lac (7.7 per cent) is not known.
Amaysim shares closed 2.6 per cent higher at 78 cents. The Optus transaction is expected to be completed on February 1.
Source: Thanks smh.com