TPG buys into iiNet

Stuart Corner
Tuesday, 18 October 2011 13:06

IT Industry - Listed Tech

iiNet appears to be somewhat concerned by TPG becoming a minority shareholder. It has alerted the ASX to TPG's involvement, even though it remains below the five percent at which a substantial shareholding notification would be required.

In a statement to the ASX, iiNet (ASX: IIN) said: "iiNet regularly analyses the beneficial ownership of its securities. The most recent analysis of the iiNet share register shows that entities owned by TPG Telecom Limited (ASX: TPM) have acquired a shareholding in iiNet, but not to a level) requiring the lodgement by TPG of a substantial shareholder notice."

TPG acquired 1.35m shares following a decision earlier this year by Amcom (ASX: AMM) to distribute the 35.5 million shares (23.4 percent) it held in iiNet to its shareholders. Since then, iiNet said it believed that TPM, through two other subsidiaries, had acquired an additional holding of 5.3m shares to take its stake in iiNet to 4.4 percent.

TPG responded to iiNet's announcement with one of its own saying "TPG currently has no specific intention regarding iiNet other than to own shares as a strategic investment."