The long awaited notification of the takeover of Australia's largest Internet service provider, OzEmail, by international telecommunications carrier MCI WorldCom finally came to pass last night.
OzEmail reported to the Australian Stock Exchange that the sale of 107,424 ordinary shares at $US2.20 per share to UUNET Holdings Australia has been approved.
Officials from OzEmail also announced yesterday that MCI WorldCom's subsidiary, UUNet Australia, has successfully achieved shareholder approval for the $520 million takeover.
The deal was originally meant to close 5pm February 9, but was extended until February 24 because MCI WorldCom failed to attract the required amount of shareholders.
The deal had already been accepted by OzEmail directors Sean Howard, Malcolm Turnbull and Trevor Kennedy, who together owned 54 per cent of the company, and the Foreign Investment Review Board (FIRB) and Australian Securities and Investment Commission (ASIC) approved the merge in January.
However, under corporations law, UUnet Australia was still required to gain 75 per cent acceptance in order to compulsorily acquire all outstanding shares.
In the deal, OzEmail will reportedly become the Internet arm of UUNet Australia and will allow MCI WorldCom to strengthen its local presence and come head to head with telco gaint Telstra.