Inabox Receives Another Takeover proposal, Asks Its Shareholders To Hold Till Better Option

  • Nov 16, 2018 AEDT
  • Team Kalkine
Inabox Receives Another Takeover proposal, Asks Its Shareholders To Hold Till Better Option

Inabox Group Limited (ASX: IAB) who is the diversified telco provider has received another takeover bid almost after a year, the company stock halved as a result of downfall in the profit of the company followed by loss of the customers of the company.

Today morning only, the company has received a takeover offer from SB&G Telecoms. SB&G Telecoms is a subsidiary of SB&G Group which has already acquired 20% shares of Inabox Group Limited. Now it wants to acquire the company whose funds will be advised by the Salter Brothers Asset Management. 

In the month of October, Inabox had told their investors that in case the company does not fond any suitable offer, then it would sell all its operating subsidiary units for $33.5 million. However, now the company has received a new offer which is above the offer made by MNF. Earlier when the company asked to vote in favor of the deal, the investors were ready for the deal, but now they are ready to consider the offer made by SB&G Telecoms.

Now after the arrival of a new offer, it is expected that the shareholders meeting which was supposed to held on 19 November 2018 will be delayed. Before the arrival of the new offer, it was scheduled that the investors would be voting in favor of the MNF offer.

After the takeover proposal of SB&G the share price of Inabox has gone up by 11% and the price opened this morning by 90 cents per share. Since last year after the arrival of the bad news, this price of the share was the highest price as of now.

The chief of Inabox, Damian Kay stated that the deal made by the MNF would have created more significant value for the shareholders over the medium term by operating the company in its existing form.  He also said that the company will be providing the sales agreement to its shareholders. He also commented that the transaction of the acquisition will cover the strategic review by the senior management as well as the board of members for a period of 6 months of confidential discussions with other interested parties.

On completion of the transaction gets completed, the shareholders of the company will get a cash return at a premium which will above the average market price of the share.  The indirect business of Inabox will be purchased by the MNF Group. Mr. Kay also feels confident that the staff, customers, and suppliers will definitely enjoy being a part of a larger and highly successful company.

Now the company will take a hold on any new offer. The board does not want to make any recommendation at this stage and is looking for some other better offers above the MNF group transaction.

Today, the company has asked ASX for the trading halt till 20 November 2018 until there is any further announcement made. By the end of the day, the market price of the share was A$0.915 with the market capitalization of A$21.44 million.


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