Telco will offer two Telco shares for five Market Faxts fully paid ordinary shares. The junior telecommunications company’s present intention is to keep Market Faxts as a listed company.
The takeover bid follows a Market Faxts announcement that its forecast loss for the year to December 31 will be $2.33 million, up from a prospectus forecast of $0.99 million. “Directors’ revision of the forecast has been caused by the slower-than-anticipated roll-out of the company’s new InfoChoice Web sites during the six months to June 30,” the company said.
Telco described its offer as “highly attractive, representing a premium over the prevailing Market Faxts price and reflecting full and fair value to Market Faxts shareholders. This is a strategic opportunity for Telco, in particular Market Faxts proposed travel and shopping choice sites fit neatly with Telco’s investments in Enjoy Travel.com and ShopSmarter.”