Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


ihug Settles into iiNet

ihug Settles into iiNet

Established New Zealand ISP ihug today announced that it has today unconditionally joined forces with ASX-listed iiNet Limited (ASX: IIN) to become one of Australasia’s largest ISPs. The company has now completed the merger of its business with iiNet’s, and this will continue to operate under the “ihug” brand in New Zealand and Australia.

iiNet shareholders approved the transaction at a meeting last Friday (17 October).

In addition to approving the transaction, iiNet shareholders also voted to appoint ihug Chairman, Keith Goodall, Auckland chartered accountant and company director, to the Board of iiNet. A second New Zealand director will be appointed at the iiNet Annual Meeting in November.

The total consideration paid was A$30.1 million in cash and 23.7 million shares in iiNet. As a result of this transaction the shareholders of ihug now hold 30 pecent of the shares in iiNet. Shares in iiNet closed yesterday at A$3.07.

“We are delighted with the positive response this transaction has received from the market,” says iiNet Managing Director, Michael Malone. “It makes iiNet the fifth largest ISP in Australia and ihug the third largest in New Zealand, with a strong base of loyal customers in both countries.”

The two organisations have begun to integrate their financial and information technology systems.

“Our 300,000 customers in New Zealand and Australia will see new services introduced as we merge the two business operations,” says ihug Chief Executive, Martin Wylie. “Innovation is an important part of ihug’s brand and of the value that iiNet sees in us.”

About iiNet and ihug
Founded in Perth, Western Australia in 1993, iiNet has grown organically and through selective acquisitions to the point where today it has 130,000 current subscribers in Australia, up from 72,850 12 months ago. It is the second largest provider of DSL services in Australia. For the 2003 year iiNet generated revenues of $40 million, up 54 percent from the previous year. The Company reported a net profit after tax of $5.2 million and paid a final dividend of 4 cents per share.

In October 2003 iiNet purchased the business and assets of privately owned, New Zealand-based ihug, one of Australasia’s largest Internet Service Providers. The company has 170,000 current subscribers across broadband, dial-up and telephony products in New Zealand and Australia. It also provides wholesale broadband and satellite access and web services to telecommunications operators and ISPs in both countries. The company has achieved its position from a culture of continuous innovation, which includes New Zealand’s first flat rate Internet access plans, high-speed satellite access and telephony services.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>