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Telco sector heats up

A merger between two telecommunications companies, concluded by two national firms, has driven a flurry of activity in the telco sector.

July 10, 2015 By Felicity Nelson
Paganin Mark
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Firms: Clayton Utz (Amcom Telecommunications); Minter Ellison (Vocus)

Deal: Amcom Telecommunications merged with Vocus Communications.

Value: $1.3 billion

Key players: Clayton Utz Perth partner Mark Paganin (pictured) led the firm's team together with partner Cameron Belyea, with support from senior associates Stephen Neale and Liz Humphry and lawyers Thomas Parker and Alex Snell.

Deal significance:

This merger brought together two telecommunications companies, Perth-based Amcom and Sydney-based Vocus, with a combined value of $1.3 billion. 

In June, around 90 per cent of Amcom shareholders voted on the merger, in what was one of the highest turnouts in Australian history. This vote was required to overturn TPG’s opposition to the merger.

Following the announcement of Amcom’s scheme, TPG acquired a 19.9 per cent stake in Amcom.

The merger was the catalyst for a period of major consolidation and activity in the telecommunications sector, Clayton Utz reported.

The announcement of Amcom's merger was followed by Vocus' acquisition of a 14.99 per cent stake in Macquarie Telecom, TPG's merger proposal to iiNet, M2's competing proposal for iiNet, TPG's superior proposal for iiNet and Vocus increasing its stake in Macquarie Telecom to 16.02 per cent.

Amcom shareholders were issued ASX listed shares in Vocus as consideration for their Amcom shares, and three Amcom directors will be appointed to the Vocus board.

Amcom is an IT and telecommunications company that is a provider for the information, communication and technology needs of business and government in Australia. 

It was incorporated in 1993 and listed on ASX from the time of its 1994 initial public offering until delisting, which is expected to occur shortly given the scheme's implementation.

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