More on OzEmail .. Looks like WCOM's strategy to dominate in Asia-Pacific continues.
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MCI WorldCom Offers to Buy OzEmail for $322.8 Million
Wall St. Journal / Dow Jones Newswires, December 14, 1998
SYDNEY -- MCI WorldCom Inc. said late Sunday it acquired about 15% of OzEmail Ltd., one of Australia's leading Internet service providers, and will make a cash offer to buy OzEmail for US$322.8 million.
MCI WorldCom's UUNet Holdings Australia Pty. Ltd. unit will make the offer to acquire the company for US$2.20 a share, including American depositary receipts at a price of US$22 a share. In Australian dollars, MCI WorldCom's proposal is worth A$3.54 a share or about A$519.4 million, OzEmail said. The company has about 146.7 million ordinary shares issued and outstanding after the placement to MCI WorldCom.
The offer will remain open for at least one month from early January. It is subject to MCI WorldCom becoming entitled to at least 90% of OzEmail and Foreign Investment Review Board approval. MCI WorldCom's UUNet unit is a global leader in Internet communications solutions.
MCI WorldCom said it was able to acquire 21.9 million shares by way of a share subscription agreement with OzEmail at US$2 per share. The share subscription agreement gave MCI WorldCom a 14.9% interest in OzEmail.
OzEmail directors Sean Howard, Malcolm Turnbull and Trevor Kennedy, who together held 54% of the company prior to the share issue, have agreed to accept the offer and recommend other shareholders do likewise in the absence of a higher bid.
If the offer succeeds, OzEmail will become the Australian Internet arm of UUNet.
"The Asia-Pacific region is of key strategic importance to
us and the synergies between OzEmail and MCI WorldCom are clear," said MCI WorldCom Vice Chairman John Sidgmore.
"The local fiber we are deploying in Australia
complements OzEmail's Internet presence and the vast
international resources of MCI WorldCom, particularly
our world-wide Internet backbone, will bring improved
global connectivity to OzEmail's customers," Mr.
Sidgmore said. |
