MediaRing extends offer to acquire Pacific Internet

Asian VoIP service provider, MediaRing has extended its cash offer to acquire all the issued shares of local ISP, Pacific Internet.

MediaRing’s first attempt to acquire NASDAQ-listed PacNet in late February was denied, when PacNet’s board recommended that shareholders reject the offer.

A second offer was originally scheduled to expire at midnight, New York City time, on 12 June however this will now be extended to midnight 26 June, unless further extended.

MediaRing’s offer price remains at US$8.25 net in cash per share, representing an approximate 27.7 percent premium over the closing price of PacNet shares on February 24, 2006 (the last trading day on the NASDAQ before MediaRing announced its intention to make the offer).

Koh Boon Hwee, executive director of MediaRing said it was confident that it has put forth a very strong offer and remains committed to its price offer.

“The market price of PacNet shares has been drifting downwards and closed at US$7.75 on June 12, lower than our offer price,” he said.

MediaRing’s offer was subject to the condition that it tender a sufficient number of shares in PacNet and own (including current shares) more than 50 percent of the issued shares of PacNet as of the final expiration of the offer.

Hwee said MediaRing was advised that approximately 1,598,293 shares (including 244,674 shares tendered), representing 11.8 percent of the issued shares of PacNet, had been validly tendered in and not withdrawn from the offer as of 12 June.

"During our initial announcement on 27 February, we owned 651,572 shares, or approximately 4.8 percent of the issued shares of PacNet," he said.

With the extension of the offer, the proposal made to PacNet's holders was also extended to midnight, New York City time, on 26 June, unless the offer is further extended.

PacNet shares were trading at US$7.85 on the morning of June 13.

CRN was unable to reach PacNet at press time.