MNF Group Ltd (ASX: MNF) or My Net Fone released an update to the ASX today saying it will not increase or improve its offer (lodge on October 8th) to acquire Inabox Group Ltd’s (ASX: IAB) wholesale and enablement business.
MNF Group is a telecommunications company operating in the local and global Voice over Internet Protocol (VoIP) market.
Basically, it enables its customers to do things like connect dozens of unique phone lines to one office building with ease. It also has operations outside of VoIP (e.g. mobile plans).
On October 8th 2018, MNF Group offered to buy IAB’s business for between $30.5 million and $33.5 million.
“IAB performs a leading role in the Australian wholesale telecommunications market and brings considerable volume and scale to the MNF business”, MNF Group CEO Rene Sugo said at the time.
“The company is also recognised as the leading provider of SaaS enablement services to the industry – strongly complementing the MNF business.”
Since then another suitor entered the picture in SB&G Telecoms, which offered a competing bid for IAB valued at 90 cents per share, which is subject to quite a few conditions.
MNF Group returned to the market to say it would pay $34.5 million for IAB’s business, which would allow IAB’s management to return 90 cents per share of capital back to shareholders.
This week SB&G Telecoms returned to offer a revised bid.
However, this morning as IAB shares entered a trading halt, MNF Group said it would not budge on its new offer given that its deal provides more certainty.
The MNF update read: “Having reviewed the details in the revised SB&G proposal, the MNF Board’s opinion remains that completion of the MNF agreement still provides more value, more certainty and significantly less risk to IAB shareholders than the revised SB&G proposal.”
We’ll know tomorrow.
In my opinion, MNF remains one of the few ASX telco companies that are worth watching closely in 2019. But before you do that…
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