TPG shares drop over uncertainty on deal with Vocus
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More news: Shares in TPG Telecom were down more than 2% to $5.26 in early trading on the ASX. It comes after the telecoms firm said an exclusive diligence period granted to Macquarie-backed rival Vocus Group for the $6.3 billion sale of its non-mobile fibre assets had expired. The two companies are still continuing discussions, although TPG said there is no guarantee a deal will eventually materialise.
TPG-Vocus talks continue over $6.3 billion deal
The news: Telecoms firm TPG Group says it is continuing talks with Vocus for the sale of its fixed network, despite the exclusive diligence period now having expired.
The numbers: Vocus had offered $6.3 billion for TPG’s enterprise, government and wholesale assets along with the associated fixed infrastructure. TPG said this consideration, and the highly provisional indicative EBITDA perimeter of approximately $550 million, are subject to change.
The context: TPG, Australia’s third-biggest telecoms firm, has been looking to simplify its brand and product portfolio, and the current deal is aligned with those efforts. TPG on Wednesday told shareholders that the nature of the transaction “involves considerable complexity which needs time to work through” and said there is no certainty a deal will eventuate.
The source: ASX announcement
