iiNet confirms OzEmail in its sights

Summary:Australia's fourth largest ISP iiNet has formally confirmed to the market it is interested in acquiring OzEmail.Just months after entering a conditional agreement to purchase the Internet service business operated by Melbourne-based Virtual Communities Limited, iiNet is continuing its aggressive growth-through-acquisition strategy.

Australia's fourth largest ISP iiNet has formally confirmed to the market it is interested in acquiring OzEmail.

Just months after entering a conditional agreement to purchase the Internet service business operated by Melbourne-based Virtual Communities Limited, iiNet is continuing its aggressive growth-through-acquisition strategy.

According to a statement to the Australian Stock Exchange dated January 27, iiNet's company secretary Clayton Hollingsworth said that because of "recent press speculation", the company has complied with Chapter 3 of the ASX Listing Rules and disclosed its interest in OzEmail.

"As an active consolidator of the Australian and New Zealand Internet markets iiNet would be interested in a potential purchase of OzEmail, assuming that the terms of such a purchase met iiNet's strict financial hurdles," said Hollingsworth.

Hollingsworth said that although the companies have not yet reached an agreement, they are holding discussions.

iiNet's share price has increased by almost 10 percent during the course of the week to AU$3.55.

Topics: Telcos, Banking

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