Haven't done my sums yet:
Merger to create 5th largest ISP
July 13, 2005
INTERNET service providers (ISPs) Chariot Ltd and Datafast Telecommunications Ltd have agreed to merge, to form the fifth largest ISP in Australia.
Under the agreement, Datafast shareholders will receive two Chariot shares for every 79 Datafast shares held, with Chariot issuing 40 million new Chariot shares to Datafast shareholders.
After the merger, Datafast shareholders would hold about 48 per cent of the issued capital of Chariot.
Datafast also plans to undertake a capital return of up to $1.75 million to its shareholders at the time of the merger.
The board of the merged entity will comprise three directors nominated by Chariot and three directors nominated by Datafast.
Chariot chairman Peter Buttery will become independent chairman of the combined company.
Datafast chief executive Simon Ehrenfeld and Chariot managing director Robert Horlin-Smith will act as joint CEOs.
"We expect a significant upwards re-rating of the enlarged enterprise as synergies from the merger provide a true national ISP and broadband network with strong revenue, earnings and dividends," Chariot managing director Robert Horlin-Smith said.
The merger requires the approval of Datafast shareholders.
Datafast shares last traded at 1.4c while Chariot shares were at 60c
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