TPG Telecom has struck a $5.25 billion deal to sell its fibre network to the Macquarie and AwareSuper-backed Vocus Group, pocketing a cash pile to beef up its consumer business.
The agreement, amended from a sale and lease-back proposal discussed last year, will give Vocus control over more than 50,000km connecting 20,000 buildings in cities and regional areas, as well as 15,000km of international submarine cables.
It also includes the purchase of TPG’s enterprise and government business.
“This agreement is transformative for Vocus and is an important step towards creating a more competitive landscape for the Australian telecommunications industry,” Vocus interim chief executive Jarrod Nink said.
The sale price reflects the enterprise value of the TPG assets, with the company set to pocket between $4.65b and $4.75b in cash if the deal is finalised as expected in the second half of 2025.
TPG, which will pay $130m a year to access the divested fibre infrastructure, said the amended deal was was a simpler one than last year’s scrapped proposal.
“The deal unlocks the value of our fixed infrastructure assets while strengthening our financial position and creating a more focused and streamlined business with significant optionality,” TPG chief executive Iñaki Berroeta said.
More to come.
#Vocus #billion #deal #TPG #Telecom #fibre #networks
