iiNet

About the author:

Author name:

By Nick Harris

Job title:

Senior Analyst

Date posted:

21 March 2014, 11:31 AM

Sectors Covered:

Telecommunications, Technology

In November 2013, iiNet CEO and Founder Michael Malone announced he was taking a 3-6 month break after 20 years of running IIN. Three months later he has decided to make it permanent and has resigned as CEO and from the Board of Directors.

He commented "it's never easy to say goodbye, but this is an ideal time to leave - iiNet is in the best financial shape it has ever been and has a strong growth plan for future success."

IIN's acting CEO is David Buckingham who is well respected and has a long history with IIN as its CFO. He will continue to run IIN in the interim and potentially longer term. The Board is conducting an international search for a new CEO but commented they'd be delighted if that turns out to be David Buckingham.

Michael Malone leaves IIN in a very strong position so we are not concerned. He owns 5.6% of IIN (making him the second largest shareholder behind TPG which owns 6.3%). In our view his resignation increases the possibility of corporate appeal (potential acquirers being Vodafone and TPG Telecom).

More information

If you are interested in finding out more about iiNet (IIN), please contact your nearest Morgans office.

Disclaimer(s): Analyst owns shares.

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