SYDNEY, March 13 (Reuters) - Australia’s TPG Telecom Ltd on Friday said it will buy domestic Internet service provider iiNet for A$1.4 billion ($1.08 billion) to boost its broadband business.
TPG Telecom, which already holds a 6.25 percent stake in iiNet, will pay A$8.60 per iiNet share, a 26.3 percent premium on Thursday’s closing price.
“The Board views this as a significant reward for shareholders,” iiNet Chairman Michael Smith said in a statement.
The combined business will provide broadband services to over 1.7 million subscribers. ($1 = 1.2984 Australian dollars) (Reporting by Swati Pandey; Editing by Robin Pomeroy)