Singapore-based Asian voice-over-internet protocol (VoIP) service provider MediaRing has extended its cash offer for Singaporean rival Pacific Internet Limited (PacNet) until midnight, 26 June. The offer, which has been rejected by the PacNet board, was due to close on 12 June. MediaRing is offering to buy the company for USD8.25 per share, an approximate 27.7% premium on the closing price of PacNet shares in late February, before the bid was tabled. According to MediaRing executive director, Koh Boon Hwee: ‘The market price of PacNet shares has been drifting downwards and closed at USD7.75 on 12 June, lower than our offer price.’
PacNet declined MediaRing’s offer on 1 June, opting instead to continue as an independent entity while it weighs up other possible merger plans. PacNet’s board made the decision after taking advice from its financial advisor BNP Paribas Peregrine, which recommended that PacNet either continue as it is and forge ahead with plans to transform itself into an IP-based communications provider, or pursue a merger with suitable partners.