Inabox receives another takeover proposal, tells shareholders it’s sleeping on it
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Diversified telco provider Inabox Group has received another takeover bid, nearly exactly a year after the company’s stock halved following a loss of customers and a profit downgrade.
Inabox (ASX:IAB) told investors today that it had received a takeover offer from SB&G Telecoms, a subsidiary of SB&G Group, which comprises funds advised by Salter Brothers Asset Management. SB&G Telecoms has already acquired nearly 20 per cent of Inabox shares.
The new offer competes with an existing one from $293 million telco provider MNF Group. In October, Inabox told investors it would sell all of its operating subsidiaries for $33.5m “in the absence of a superior offer”.
At the time, Inabox recommended shareholders vote in favour of that deal, but now it is considering the SB&G Telecoms offer.
It will sleep on it, and has moved to delay the shareholder meeting originally scheduled for November 19, during which investors were to vote on the MNF offer.
Inabox shares rose 11 per cent to SB&G’s proposed takeover price of 90c per share — the stock’s highest point since last year’s bad news.
Back in October, Inabox chief Damian Kay said the MNF deal “would unlock significantly more value for shareholders than might otherwise be expected over the medium-term by continuing to operate the company in its current form”.
“We are delighted to present the sale agreement to the shareholders of Inabox. The transaction follows a strategic review by the Inabox board and senior management and over six months of confidential discussions with several interested parties,” he said.
“The transaction, if completed, offers our shareholders a cash return which represents a significant premium over the recent average market price of our shares. MNF Group is a natural buyer for our indirect business and I am confident that our staff, customers and suppliers will benefit from becoming part of a larger, highly successful company.”
Now the company says it will sleep on the new offer.
“The IAB board, having only just received the takeover proposal, and which was unsolicited, is currently considering the offer so that it will be in a position to advise shareholders as soon as possible whether or not it recommends proceeding with the offer as a superior offer to the MNF Group transaction,” it said.
“The board makes no recommendation at this early stage.”