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Australia’s TPG to buy Pipe for $373m
12 March 2010
TPG Telecom has finally won control of Australian network Pipe in a deal valued at $373 million
Pipe Pacific Cable
Shareholders in Pipe Networks in Australia have approved a $373 million takeover by TPG Telecom. About 94% of Pipe shareholders have voted in favour of the deal.
TPG had made the offer to acquire Pipe in 2009, for a price of $6.30 per share. Pipe shareholders had earlier expressed concern over the proposed buyout. The deal was negotiated by TPG CEO, David Teoh.
The buyout will give TPG an extensive dark fibre network between the eastern states of Australia, including the Pipe Pacific Cable link between Sydney and Guam. The deal will allow the company to offer bigger data caps and potentially unlimited broadband services.Pipe said shareholders had accepted the deal, subject to approval by Queensland’s Supreme Court. The company said it expected March 17 to be its last day of trading. GTB