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Merger expands telco reach
Two telecommunications companies have undertaken a scrip-for-scrip merger to expand their services nationwide.
Melissa Coade
Firms: Clarendon Lawyers (Vicwest Community Telco); Kelly Hazell Quill (Bendigo Telco)
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Deal: Vicwest Community Telco (Vicwest) has merged with Bendigo Telco (Bendigo).
Value: $16 million
Area: M&A
Key players: The Clarendon team advising Vicwest was led by M&A directors Robert Feiner and Tony Symons. Director Susie Stone, senior associate Ken Gitahi, associate Peter Clay and lawyer Natasha Arora assisted with the deal.
Deal significance:
Vicwest, a telecommunication and internet service provider, has merged with Bendigo in a move both companies hope will create a leading national telco business.
The scrip-for-scrip merger was undertaken by way of a scheme of arrangement and generating a combined market cap of approximately $16 million.
Both Vicwest and Bendigo were established by Bendigo and Adelaide Bank. Under the merger transaction, Bendigo Bank retains a major shareholding of approximately 30 per cent in the combined group and entered into certain ancillary transactions to give effect to the merger.
Clarendon director Robert Feiner (pictured) said he was pleased to have been able to assist with an important deal for both companies.
“We are very pleased to have assisted Vicwest and its shareholders in joining a larger telecommunications business, which has exciting prospects for growth and delivering further value to shareholders and local communities in the western Victorian region.”
