TPG completes undersized $300m institutional reinvestment plan
Make us a preferred source
Make us a preferred source on Google
The news: TPG Telecom has completed its $300 million institutional reinvestment plan, under the $550 million it planned to raise.
The numbers: About 83 million new shares will be issued at $3.61 each, a 5% discount to TPG’s last close price of $3.80 on 14 November. The reinvestment plan gave minority shareholders the chance to reinvest the capital return of $1.61 per share following a $5.3 billion asset sale to Vocus.
On Monday, TPG said the total non-underwritten reinvestment plan looked to raise $688 million from both institutional and retail investors.
The context: While the initial plan “generated very strong demand, materially above the initial target amount of up to $550 million”, TPG told the exchange it reduced the size of the plan on Tuesday to $300 million.
This was due to TPG’s announcement on Tuesday that it had become aware that a Lebare customer had passed away after being unable to access Triple Zero services “due to outdated software on a Samsung device”.
This led to an extended ASX trading halt on Tuesday with the raise also affected by “an overall deterioration in global equity market conditions overnight”.
The retail reinvestment plan is expected to raise up to $138 million with the prospectus to be lodged on or around 20 November. Combined proceeds of up to $438 million will be used to repay additional bank borrowings, which would put total repayment at about $2.7 billion since 30 June 2025.
What they said: “We wish to recognise the strong commitment of the TPG Telecom shareholders who supported this raising. The Reinvestment Plan is the final step of our Capital Management and Liquidity Plan,” TPG Telecom managing director and CEO Iñaki Berroeta.
The source: ASX
