Australia's M2 Telecoms buys Primus Telecom for $199 million

MELBOURNE Sun Apr 15, 2012 7:10pm EDT

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MELBOURNE (Reuters) - Australia's M2 Telecommunications Group (MTU.AX) said on Monday it has agreed to buy Primus Telecom Holdings, the Australian operations of the U.S. Primus Telecommunications Group Inc PTGI.N, for A$192.4 million ($199 million) in cash.

M2 said it will launch a one-for-four rights offer to raise A$83.1 million to partially fund the acquisition.

The national Primus network, including the iPrimus brand, has about 165,000 residential and corporate customer contracts and had revenues of A$280.2 million in 2011, M2 said.

(Reporting by Victoria Thieberger; Editing by Ed Davies)