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MNF wins Inabox acquisition fight

Inabox shareholders have approved a scheme by MNF to take its wholesale business, forcing SB&G to drop its bid.
Written by Chris Duckett, Contributor

MNF Group has emerged as the victor in the fight with SB&G to pick up the wholesale business of Inabox.

Announced on Friday afternoon, Inabox shareholders backed the board's recommendation and approved the MNF offer, with 67 percent in favour of and 30 percent opposing the deal.

MNF launched its bid for Inabox in October, and, following an off-market approach by SB&G, had to up its offer to AU$34.5 million.

Inabox chair David Rampa told shareholders on Friday that the company faced solvency issues if the sale did not go ahead.

"If the improved MNF transaction does not occur, Inabox will face solvency issues and will require an additional AU$3m of capital to meet its existing and projected short-term obligations. This AU$3m cannot be immediately satisfied from cashflow from operations and as a result a capital raising will immediately be required," Rampa said.

In August, 5G Networks picked up the direct businesses of Inabox for AU$5.7 million in cash.

Rampa said that transaction led to offers for the rest of the company.

"After a detailed strategic review, the decision was taken to sell the Direct business, consisting of the Anittel and Hostworks businesses, to refocus the Inabox Group on its core capabilities -- enabling over 500 channel partners and national retail brands to resell telecommunication services," he said.

"Such was the strength of this strategy that as soon as the market became aware of it a number of informal approaches were received to acquire the Indirect business at a significant premium to where the share price had been trading at that point in time."

Subsequent to shareholders going with MNF, SB&G withdrew its AU$0.95 per share offer for Inabox. As part of the MNF proposal, Inabox shareholders will receive a AU$0.90 payout.

Inabox is now set to rename itself to IAB Holdings and delist from the ASX as it winds up the company and its remaining subsidiaries.

"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," Inabox CEO Damian Kay said in October.

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