iiNet shareholders have moved to snap up an offer of TPG shares ahead of a vote on whether to accept TPG's acquisition offer for the ISP.
TPG's original offer for iiNet, details of which were revealed in March, was cash only.
However, a competing offer by M2 led to TPG revising its offer.
The revised offer, which received the unanimous support of iiNet's board, gave iiNet shareholders the choice of either cash or TPG shares (at a ratio of 0.969 TPG shares per iiNet share).
TPG shares available under the revised offer were capped at 27,523,946. However, those iiNet shareholders opting to receive shares if the takeover goes ahead equated to 48,202,422 new TPG shares.
Because demand for TPG shares exceeded the cap, the scheme will be subject to scale back. iiNet shareholders with fewer than 96 iiNet shares will be treated as having opted for cash (at $8.80 per iiNet share).
Other shareholders who requested TPG shares will receive 0.5533 TPG shares per iiNet share and $3.77 in cash. (Both categories of shareholder are eligible for a $0.75 discretionary special dividend.)
iiNet shareholders are due to vote on the TPG takeover on 27 July.
The Australian Competition and Consumer Commission is examining whether the acquisition could potentially decrease competition in the retail broadband market.
The ACCC revealed in June that its preliminary view is that the acquisition could lead to a substantial lessening of competition.
The competition regulator is due to announced its final decision on 20 August.