M2 buys 12 per cent stake in Inabox

M2 Telecommunications will invest $2 million in Inabox Group, a wholesale telco service operator, for a 12 per cent stake in the company.

M2 will make the investment via Inobox’s initial public offering, with M2 to acquire 1,666,667 shares at $1.20 per share.

“We are pleased to make this strategic investment into the Inabox IPO, building on what is an excellent, long standing relationship between our companies and providing a strengthened foundation to explore further commercial opportunities into the future,” Geoff Horth, M2 CEO, said in an ASX statement.

Inabox calls itself a virtual telco that purchases capacity from Telstra, Optus and AAPT to sell to more than 200 direct retail service providers.

Inabox announced in May this year that it was planning an IPO of $2.9 million, issuing around 2.4 million shares at $1.20 per share.

M2 has recently closed several acquisitions, including an off market takeover of Eftel, a $204 million acquisition of Dodo Australia and the $192.4 million acquisition of Primus in April last year.

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