M2's Eftel takeover closes

The buyout of Eftel by M2 Telecommunications has officially closed, with the latter acquiring over 98 percent of the internet service provider’s shares.

M2 will now take over the remainder under the compulsory acquisition provisions of the Corporations Act. 

M2 first indicated its intention to take over Eftel in March, with an offer of $0.35 per share valuing Eftel at $44.1 million. 

In April, most of Eftel’s shareholders voted yes for the deal. Later that month CEO Scott Stavretis and four directors resigned from the company, while M2 chairman Craig Farrow and executive director Vaughan Bowen were named directors at Eftel. 

Chairman Stephe Wilks remains in his position until the takeover is complete, and told iTnews last month he expected there would not be material change to Eftel’s business. 

“We’re doing a bit of joint work to work out how to put the companies together. Broadly they love the business and where it has gone, I think there’ll be quite a big part of the organisation staying the same," he said in April.

M2 also made a play for ISP Dodo at the same time as its Eftel bid. It completed that acquisition in April for $204 million.