M2 closes Eftel offer

M2 will now acquire the rest of Eftel’s shares under compulsory acquisition provisions of the Corporations Act after 98 acceptance

M2 Telecommunications has closed its offer to acquire ordinary shares in Eftel, with more than 98 per cent of Eftel shareholders accepting the offer.

M2, which acquired Primus in April last year for $192.4 million, also recently acquired Dodo for $204 million.

M2 will now acquire the rest of Eftel’s shares under compulsory acquisition provisions of the Corporations Act.

The company announced it was making an off-market takeover offer for Eftel in March for 35.81 cents per share, implying a total enterprise value of $44.1 million.

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.

Eftel was established in 1999. In September last year the company acquired VoIP provider Engin for $9.1 million. Its other brands include ClubTelco and aaNet.

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