Improves Acquisition Terms for Inabox Group Business
On the 15th of November 2018, IAB advised MNF that it had received a notice from SB&G Consortium, that its subsidiary, SB&G (Telecoms) Pty Ltd, intended to make an all cash offer to acquire all of the shares in IAB Group, through a conditional off-market takeover bid at a price of 90 cents cash per IAB share.
Having reviewed and updated our analysis, the MNF Board are of the view that the MNF agreement announced on 8th October 2018 would ultimately still provide better value to IAB shareholders. However, as a result of the simplicity offered by SB&G's proposal, and to put matters beyond doubt for IAB shareholders, MNF has agreed to revise the terms of acquisition, as set out below.
MNF will now pay IAB $34.5m in cash for the same business assets, subject to approval at an Extraordinary General Meeting (EGM) of IAB shareholders. MNF has simplified its terms by making completion payment conditional only on a majority of IAB shareholders voting in favour of the MNF transaction at IAB's adjourned EGM, which is scheduled to re-convene on the 7th of December 2018.
IAB have stated in their announcement "The Inabox board believes the Improved MNF Transaction provides shareholders with greater certainty and a higher return than the SB&G Offer. The Inabox board unanimously recommends shareholders vote in favour of the Improved MNF Transaction in the absence of a superior proposal, and take no action in respect to the proposed SB&G Offer when it is made."
IAB has announced that the improved MNF Transaction will allow IAB to return to its shareholders 90 cents per share, comprised of a capital sum and a fully franked dividend, delivering a superior financial outcome to IAB's shareholders. IAB indicated that grossed up to include the value of franking credits, the distribution increases to $1.02 per share pre-tax. Many IAB shareholders may benefit from the franking credits and any capital losses incurred. IAB shareholders should discuss the tax implications of these distributions with their tax advisers.
About MNF Group Ltd
MNF Group Limited (ASX:MNF) is one of Asia-Pacific's fastest growing technology companies. Listed on the ASX since 2006, it is now capitalised at around $320M, and twice winner of the Forbes Asia-Pacific "Best under a Billion" award. Headquartered in Sydney, Australia, the company has over 500 people located across Asia-Pacific, Europe and North America. MNF develops and operates a global communications network and software suite enabling some of the world’s leading innovators to deliver new-generation communications solutions.
As the world moves to IP, MNF Group is building the brands, services, network and technology to lead the way.
For further information about MNF Group Limited please visit: http://mnfgroup.limited/
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Inabox Group Limited