I'm making no comment on who/what we're acquiring. I will confirm the blindingly obvious: we are buying another business. That's why we're raising capital.
To correct some numbers that have been quoted on here. iiNet have well over 220,000 ADSL subscribers and about 70,000 dial up subscribers (plus phone, VoIP, hosting etc). Our revenues are in the order of $240 million per year.
In terms of balance sheet, it's been quoted elsewhere, but we are "net cash", meaning no debt at the moment. In February we noted that we had a $30 million undrawn facility, which could be sized up as required, so we have plenty of capacity to take on debt, plus the ability to raise as required.
To be in halt, and to do a raising, the size of the acquisition would have to be material.
In terms of why Amcom is in halt as well, I won't comment on the specific reason (I don't know for sure). However, Amcom has been a supportive shareholder and has continued to buy more shares since they entered the register in 2006. I'm sure that Amcom would not want to be diluted by a transaction, so they would want to participate at least up to their current proportion.
The threshold for takeover is 20%, not 25%. However, a shareholder can creep an additional 3% every six months without triggering the takeover provisions.
MM
IIN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
