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Market Update

IiNet and TPG Telecom in $1.4 B Deal in Australia

Author: Marcus Jacob
Last Update: 10:11 AM ET March 13 2015

5:30 PM Sydney – Australian market indexes closed down and the Aussie dollar lacked direction in moderate trading. For the week, the ASX 200 index declined 1.5%. Internet service provider, iiNet Limited agreed to be acquired by TPG Telecom at $1.4 billion valuation.

Market indexes in Sydney closed lower and failed to remain in the positive zone.

TPG and iiNet agreed to a buyout deal after months of speculation.

Australian dollar closed at 76.71 U.S. cents and in stock trading turnover declined to 727 million shares worth $4.4 billion.

ASX 200 Index slipped 35.70 or 0.6% to 5,814.50 and broader All Ordinaries Index decreased 28 to 5,788. For the week, ASX 200 dropped 1.5%.

In commodities trading, gold gained US$4 to US$1,159 an ounce and light crude oil fell 89 cents to US$49.13 a barrel.

Brent crude edged up 0.04 cents to close at US$57.12 a barrel.

Australian Stock Movers

Lynas Corporation Limited declined 3.9% to 0.049 cents after the rare earth mineral producer said revenues in the first-half ending in December surged 345.8% to $65.05 million from $14.59 million a year ago period.

Net loss in the period widened to $103.5 million compared to $59.3 million and diluted loss per share increased to 3.64 cents from 2.69 cents in the same period a year ago.

TPG Telecom Ltd surged 17.7% to $9.11 after the communication service provider agreed to acquire iiNet Ltd, the internet service provider in a deal valuing at $1.4 billion or $8.60 per iiNet share and funded from the new debt facilities.

The transaction is expected to be close in July 2015.

Shares of iiNet Limited soared 24.8% to $8.50.

Worleyparsons Limited climbed 3.4% to $10.12 after the engineering services provider secured project-management and engineering-services contract for Australian subsidiary of Switzerland-based Viva Energy Australia’s Geelong refinery in Victoria.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc