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TPG Telecom’s fiber sale due diligence expires

Australia’s TPG Telecom said on Wednesday the exclusive due diligence period granted to Macquarie-backed rival Vocus Group for the A$6.3 billion ($3.97 billion) bid for its non-mobile fiber assets has expired.

Discussions between the parties for the commercial terms of the deal remain ongoing, with the consideration subject to change, TPG said in a statement.

“TPG securityholders should be aware that the nature of the transaction involves considerable complexity which needs time to work through and there remains no certainty an agreed transaction will eventuate,” said TPG, whose shares were down 1.1% in early trade.

A Vocus spokesperson declined to comment on the matter.

The bid, made in August, includes TPG’s non-mobile fibre assets such as certain Enterprise, Government and Wholesale (EGW) assets and associated fixed infrastructure assets, including the wholesale broadband business, Vision Network.

The EGW segment contributed to about 20.6% to the company’s entire revenue for the half year ended June 30, 2023.

A successful deal would create a combined entity with A$8 billion to A$9 billion enterprise valuation.

The offer from Vocus came amid a steady rise in dealmaking in Australia’s telecom sector, with firms also reviewing options for their aging infrastructure and capitalise on growth in 5G.

Separately, TPG was in an asset swap deal with Telstra which faced strong regulatory opposition based on competition concerns.

The company had said in August it would not appeal the country’s competition tribunal’s decision to block the asset transfer deal between the two telecom giants.


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