(Telecompaper) Australian carrier TPG Telecom has agreed to buy rival iiNet for AUD 1.4 billion. The offer price of AUD 8.60 per share, plus the AUD 0.105 dividend owed iiNet shareholders, is a 33 percent premium on iiNet's last trading price before the announcement. TPG said the two operators had complementary businesses in terms of geographic presence, market segments and corporate customer base. Together they will serve over 1.7 million broadband customers in Australia. TPG will finance the deal with external debt and see its net debt rise to 3.1 times EBITDA after the takeover. The acquisition remains subject to approval by iiNet shareholders, expected in June, and the takeover is expected to close in July.