M2 Telecommunications has completed its $204 million acquisition of Dodo Australia and will acquire the remaining 5 per cent of Eftel shares for a 100 per cent interest.
M2's deal for Dodo involved 10.47 million new M2 shares and around $157.69 million in cash under a new syndicated debt facility between M2 and lenders.
At 24 April, Eftel shareholders accepted the M2 offer for 94.9 per cent of Eftel’s shares.
Around 8.25 million new M2 shares have been provided to Eftel shareholders and around $84,000 cash provided to shareholders who made an ‘all cash’ election.
Eftel shareholders that do not accept the offer by 6 May will have their shares compulsorily acquired by M2 in accordance with the Corporations Act.
M2 expects the Dodo and Eftel acquisitions to contribute more than $50 million in earnings before interest, tax, depreciation and amortisation for the 2014 financial year.
“We now move forward with detailed plans to commence the integration process, creating a scale business with strong brand equity and growth prospects in both our small to medium business and consumer divisions,” Geoff Horth, CEO at M2, said in a statement.
Dodo has 400,000 customers and its products and services include broadband, landline phone, mobile phone, mobile broadband, electricity, gas and insurance.
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