Vocus mega merger with M2 passes major milestone

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Vocus mega merger with M2 passes major milestone

M2 Group shareholders have voted overwhelmingly in favour of merging with Vocus.

Votes in favour came from 2939 shareholders, accounting for 99.69 percent.

The deal must still be approved by a second court hearing scheduled for 5 February. If successful, M2 shareholders will receive 1.625 Vocus shares for every M2 share they have.

Upon approval, the new shares will begin trading on the Australian Securities Exchange on 9 February.

In September last year, the two companies announced their intention to merge, to create a $3 billion telco giant. The combined revenue would add up to around $1.8 billion, as well as result in expected “cost synergies” of around $40 million per year by the end of 2018.

The deal had already been approved in November by industry watchdog Australian Competition and Consumer Commission.

The ACCC said there was limited overlap between the two companies, as M2’s brands Dodo, Engin, Commander and iPrimus cover the residential and small business markets, while Vocus (including Amcom) focuses on the enterprise and government market.

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