Inabox bidding war heats up as rival reveals fresh offer

The fate of wholesale telco Inabox remains unclear after a fresh bid for the company emerged just four days before shareholders are scheduled to vote on a rival acquisition by MNF Group.

SB&G Telecoms submitted its second takeover offer to Inabox's board of directors on Monday, raising its offer from 90 cents to 95 cents for each Inabox share it doesn't already own. SB&G already owns a 19.9 percent stake in Inabox.

Inabox's directors weren't convinced by the fresh offer, asking SB&G a slate of questions centered around providing financial assurances. Board members said they did not have sufficient information to change their position of rejecting SB&G's offer.

Inabox previously indicated that due to being placed in a "very challenging financial position," it would require additional funding before the end of the year as a consequence of turning down MNF's offer.

SB&G responded today saying it was committed to working constructively with Inabox to ensure funding to continue the sale process, which it said would be in the best interest of shareholders to maximise value. This includes facilitating a $3 million equity injection  needed if the MNF offer is rejected, to ensure Inabox can satisfy its immediate funding requirements.

SB&G added that it was committed to handing out a special dividend to Inabox shareholders, which it will fund with an unsecured loan up to $6.9 million.

Inabox shareholders are still scheduled to vote on the MNF offer on 7 December.

MNF sweetened its offer last month in an effort to fend of rival bids, raising its buyout price from $30.5 million with earn-out bonuses to $34.5 million on offer, no strings attached. Inabox's directors unanimously recommended shareholders approve that offer as it was considered superior to SB&G's previous offer.

Under MNF's offer, Inabox would have $21.5 million in surplus cash, the majority of which would be returned to shareholders.

The bidding war for Inabox kicked off in October when MNF made its initial bid to buy the indirect business, which includes the wholesale telco services and enablement businesses.