SP Telemedia to buy PIPE

SP Telemedia (ASX:SOT) will acquire PIPE Networks (ASX:PWK) for $6.30 per share.

In a statement to the ASX, SPT executive chairman, David Teoh said the deal would position the company as a fully-integrated telecommunications provider.

"PIPE's extensive metropolitan dark fibre network will increase SPT's capabilities as a data communications provider," he said in the statement. "In addition, PPC-1 gives us a competitive advantage with access to international bandwidth, allowing us to offer highly attractive products to both existing and new customers."

The deal is subject to the approval of the court and PIPE's shareholders, which will be sought at a meeting likely to be held in March.

PIPE chairman, Roger Clarke, described the deal as an opportunity for shareholders to increase the value of their investment.

"Having explored a number of strategic options, I am delighted the board is now in a position to recommend the SPT proposal," he said in the statement.

More information to follow.

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