Vocus Communications took a step closer to merging with Amcom Telecommunications this week after Amcom shareholders gave the greenlight to the proposed merger, despite key shareholder TPG Telecom’s continuing opposition.
The proposed merger received ‘almost unanimous support’ from Amcom’s shareholders, with the exception of TPG Telecom, which voted against the merger.
The shareholder support flew in the face of TPG, which previously tried to kill the deal by upping its stake in the company to 19.9% - dubbed a ‘blocking stake’ by some in the industry.
A series of manoeuvres by the various companies involved then followed, including a sell-down of Vocus' shares in Amcom to improve the chances of the deal going ahead.
The merger would create a $1.2 billion communications provider.
“Amcom shareholders have turned out in force and had their say, with almost every shareholder that voted, other than TPG, voting in favour of the combination with Vocus,” says Tony Grist, Amcom chairman.
“The shareholder vote is something of a landmark given TPG held 19.99% of Amcom and voted against the scheme,” Grist says.
Of the Amcom shareholders present and voting, 98.7% found in favour of the resolution to merge. Of the overall votes cast, 77.2% were in favour.
Vocus has welcomed the outcome of the shareholder meeting.
James Spenceley, Vocus chief executive, says the result is ‘a resounding endorsement of the transaction by the overwhelming majority of Amcom shareholders’.
“The merger present the shareholders in both Vocus and Amcom with a highly compelling and unique opportunity to benefit from the creation of a company that is optimally positioned to capitalise on opportunities in the telecommunications sector,” Spenceley says.
The battle now heads to the Federal Court next week to seek court approval of the scheme.