OzEmail Ltd, Australia’s largest internet service provider announced Monday that it has taken a 60% stake in SE Net, which claims the title of biggest ISP in the state of South Australia. OzEmail handed over A$1.5m ($918,000) in the deal, which also gives it the option to acquire the remaining 40% within a two- and-a-half year time period. SE Net was founded in 1994 and boasts 16,000 customers. OzEmail says the acquisition gives it a boost in South Australia region and should allow it to attract more corporate and government clients there. OzEmail is itself a takeover target, with telecoms giant MCI Worldcom having bid $2.20 per share for the company’s outstanding stock, which is traded in the US on the Nasdaq National Market. The offer – which values the company at $322.8m – appears set to be approved by board members who hold 54% of the shares, assuming that a sweeter bid doesn’t emerge.
