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TPB Telecom evaluating Vocus offer

Australian telecommunications operator TPG Telecom has received an offer of AUS$6.3 billion (US$4.16 billion) for the potential sale of its non-mobile fibre assets to domestic rival Vocus Group.

TPG had initiated a strategic review of its wholesale residential fixed access business, Vision Network, back in October 2022, leading to multiple non-binding expressions of interest in its fixed network infrastructure assets.

In an official announcement to the Australian Securities Exchange (ASX), TPG disclosed that as part of the review process, Vocus Group submitted an indicative, highly conditional, non-binding offer to acquire specific TPG assets, which includes its Enterprise, Government, and Wholesale divisions, along with associated fixed infrastructure assets like Vision Network, for an approximate value of $6.3 billion.

However, the indicative offer is subject to various conditions, including the completion of due diligence, securing debt financing, finalizing transaction documentation, and obtaining approvals from both TPG’s and Vocus Group’s respective Boards.
Following a thorough assessment of the offer by TPG’s Board, an exclusive due diligence period has been granted to Vocus Group, which is scheduled to conclude on 6 September 2023.

It’s important to note that discussions between the two companies are still ongoing, and the terms of the potential transaction are subject to continuous negotiation.

TPG’s Board has not made any decision to accept the offer, and there is no guarantee that a finalized agreement will be reached. Securityholders should be aware that the Board of TPG has not made any decision to accept any offer, and there is no certainty an agreed transaction will eventuate. If a transaction is able to be agreed, it would also remain subject to a range of conditions, including relevant regulatory approvals.

CT Bureau

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