MNF Group has revamped its offer for Inabox’s operating subsidies in an effort to beat off a competing offer from SB&G Group.
MNF on 8 October unveiled a deal which would see it fork out between $30.5 million and $33.5 million for Telcoinabox, iVox, Neural Networks, Mobile Service Solutions and Symmetry Networks. The deal would see MNF acquire all of Inabox’s indirect businesses including all employees, with the exception of Inabox’s CEO and CFO.
The deal received unanimous support from Inabox’s directors.
On 15 November, SB&G Telecoms said it would pay $0.90 per Inabox share, contingent on the MNF deal not going ahead. Inabox estimated that the total cash distribution to shareholders from the initial MNF offer was likely to be in excess of $0.80 per share, providing the full earn-out is received.
SB&G Telecoms already owns 19.9 per cent of Inabox shares. SB&G Telecoms is a subsidiary of SB&G Group, which comprises funds advised by Salter Brothers Asset Management Pty Limited.
SB&G argued that MNF had made a “complex” offer while it had put on the table a “simple all cash offer to directly acquire all shares from existing IAB shareholders”.
MNF today announced it would pay $34.5 million in cash for the Inabox businesses, saying it had simplified terms of the acquisition by removing earn-out requirements and made it contingent only on a majority of IAB shareholders voting in favour of the deal at IAB’s extraordinary general meeting.
The IAB EGM that was due to vote on the MNF offer was earlier this week was earlier this week adjourned and is expected to reconvene on 7 December.
Inabox’s board said that it believed that the deal “provides shareholders with greater certainty and a higher return than the SB&G offer.”
“The Inabox board unanimously recommends shareholders vote in favour of the Improved MNF transaction in the absence of a superior proposal, and take no action in respect to the proposed SB&G offer when it is made,” an Inabox statement said.