The Australian | February 1, 2011 | Mitchell Bingemann
M2 Telecommunications is expected to announce a multi-million-dollar acquisition of rival telco Clear Communications after it halted trading late yesterday.
M2, which specialises in supplying fixed-line voice, mobile and internet services to businesses, will reveal the structure of the purchase when it discloses to the Australian Securities Exchange this morning, but sources close to the deal said it could be worth up to $30 million.
Clear Communications, originally a Swedish telecoms group that controlled small, local communications businesses, has a controversial history in Australia.
In late 2008, Clear offloaded seven loss-making businesses to the Strathfield Group in a reverse takeover that delivered it $115m worth of Strathfield shares.
The seven businesses, not individually identified in transaction documentation provided to Strathfield’s shareholders, were supposed to have generated $23m in combined profits in the 2008 financial year, but instead they posted a $1.8m loss.
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M2 Telecoms set to clear air on takeover of rival
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