M2 Group and Vocus Communications go into trading halt
The securities of M2 Group (ASX:MTU) and Vocus Communications (ASX:VOC) have been placed in trading halt at the request of the companies, pending the release of an announcement.
In a statement on the ASX, the companies indicated that the securities will remain in a trading halt session state until the earlier of the commencement of normal trading on December 15, or when the announcement is released to the market.
The trading halt on its ordinary shares is a result of a pending announcement by Vocus of the outcome of the first court hearing considering the scheme of arrangement between M2 Group and its shareholders under which Vocus will acquire, through a wholly-owned subsidiary, all shares in M2.
Vocus recently revealed how it will be making up $40 million in cost synergies from its merger with M2. The merger is expected to give the new business a market cap in excess of $3 billion, and make it the fourth largest telco on the ASX.
At close of trading on December 11, M2 Group shares were trading at $11.44 while Vocus Communications’ shares traded at $7.49.
