M2-Vocus merger greenlit by court

8 February expected to be final day M2 shares will trade on the ASX

Monday is expected to be the last day that M2 shares will trade on the ASX after the Victorian Supreme court today gave the go-ahead for a merger with Vocus Communications.

The implementation date is expected to be 22 February.

“We are very pleased to have received shareholder support and final court approval for the merger with Vocus,” M2 chairperson Craig Farrow said.

“I’d like to thank our loyal shareholders for their support over the last 12 years. We look forward to seeing shareholders receive excellent returns from the merged group.”

“This is an excellent outcome for both companies’ shareholders,” Vocus chairperson David Spence, said.

“This merger creates a new force in the telecommunications industry, capable of delivering great outcomes for our stakeholders.

“We look forward to maximising all the opportunities the merger provides, by continuing on a joint basis the tremendous success that each M2 and Vocus has achieved so far.”

M2 shareholders last month , which had the unanimous support of the company’s board.

M2 shareholders will receive 1.625 Vocus shares for each M2 share.

The two companies have argued that the merger will create more rather than less competition in the telco market. The Australian Competition and Consumer Commission in November gave the deal the green light.

The merged company will be Australia’s fourth-largest telco.

For FY15 M2 reported full year revenue of $1.12 billion. Vocus reported revenue of $149.8 million.

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