Vocus to pay $6.3b for TPG Telecom fibre networks
TPG Telecom’s shares soared to their highest level in a year after the communications business confirmed it is in exclusive talks with the Vocus Group to sell some of its fibre assets in a deal valued at $6.3 billion.
As reported on Tuesday by The Australian Financial Review’s Street Talk, TPG has received an indicative offer from Vocus for a bunch of telecommunications assets after last year hiring Bank of America to review its Vision Network business, which manages fixed broadband infrastructure.
The proposed sale comes as TPG, which was carrying $3.6 billion in net debt at the end of December, divests more fixed assets. Last year the listed telecommunications group sold its mobile towers and rooftop infrastructure to Canadian pension fund OMERS in a $950 million deal that also includes leasebacks.
TPG Telecom boss Inaki Berroeta has been selling off fixed assets. Louie Douvis
TPG’s stock, which briefly went into a trading halt on Tuesday afternoon, rose 11.5 per cent after TPG confirmed the Vocus offer, to close at $5.60 per share.
The offer from Vocus, which specialises in fibre networks and is owned by Macquarie Infrastructure and Aware Super, is for the Vision Network and other assets in TPG’s enterprise, government and wholesale business.
Vocus, which has not disclosed how exactly the $6.3 billion would be paid, said it continually assessed potential strategic opportunities that “may enhance its offering to customers and support its long-term growth ambitions”.
The group, which wants to become bigger so that it can compete more effectively for business and government customers with market leaders Telstra and Optus, is understood to have been eyeing TPG’s fixed assets for some time.
It has also been expanding its
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