iiNet has responded to speculation after the company placed its shares into a trading halt following speculation by the AFR over the possibility of a deal to purchase Netspace.
Australia’s third largest ISP iiNet, based in Perth is believed to be on the hunt to purchase ISP’s with strong businesses in the eastern parts of the country as it seens to maintain its position as the third largest ISP in the country. Rival TPG has threatened to overtake iiNet in market size after announcing the purchase of PIPE networks recently.
iiNet’s Company Secretary David Buckingham issued a statement to quell speculation in the media, first clarifying that the company was indeed in talks with Netspace, as well as a number of other companies within the sector. Then going on to say that the $65-75 million purchase price being speculated is far too low and the actual figure is likely to be much higher.
It is expected that iiNet will issue a formal statement to the share market in the next 48 hours before trading resumes.
Speculation on Social network Twitter is that it’s “a done deal” however until a formal statement is issued in accordance with iiNet’s continuous disclosure obligations nothing further can be confirmed.