iiNet on the cusp of buying TransACT?

iiNet has entered a trading halt on the same day that a report surfaced saying that the internet service provider (ISP) has entered final negotiations to purchase Australian Capital Territory-based TransACT.

TransACT owns a telecommunications network, with some sections connected by fibre to the premises, delivering services to households and business customers, including a large government customer base. It has 300 employees based in the ACT and Victoria.

Early this morning, the Australian Financial Review reported that TransACT had been on the market, and had picked iiNet as a preferred bidder. The two are now in the final stages of working out a contract.

Later this morning, iiNet entered a trading halt, pending the release of an announcement. Shares will begin trading again on Friday if the announcement has not yet been made.

iiNet has already been on the acquisition path, picking up Westnet, Netspace and AAPT's consumer division in the past few years. However, it may not have escaped acquisition attempts itself, with TPG recently purchasing just under 5 per cent of iiNet.

TransACT was launched in May 2000, and is run by an 11-person board. Actew Corporation has an 18 per cent shareholding in the company. Actew Corporation also owns 50 per cent of ActewAGL. TransACT offers bundled electricity, gas and telecommunications services.