TPG Telecom has agreed to sell its fiber infrastructure assets and Enterprise, Government and Wholesale (EGW) fixed business, to Vocus for AU$5.25 billion (US$3.6bn).
TPG announced the deal in a stock exchange filing today (October 14).
The company said it will retain its mobile radio network infrastructure, consumer and EGW mobile business, plus its consumer and small office/home office fixed retail business, including fixed wireless.
As part of the agreement, Vocus will provide fixed network services back to TPG.
TPG confirmed last year that it had entered discussions with Macquarie-backed Vocus over a deal to buy TPG’s non-mobile fiber assets after Vocus’ initial bid of AU$6.3bn ($4.23bn) in August 2023.
The acquisition is expected to be completed during the second half of next year subject to regulatory approval confirmed TPG, which said it expects the deal to deliver cash proceeds of AU$4.65bn ($3.12bn) to AU$4.75bn ($3.19bn).
“We are pleased to announce this transaction and the successful conclusion of the strategic review of our fiber network infrastructure assets,” said TPG Telecom CEO Iñaki Berroeta.
“The transaction reflects a smaller asset perimeter compared with the original discussions with Vocus in 2023, resulting in a simpler operating model than was envisaged in the original discussions. 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 for the optimization of our capital structure.”
In a separate statement, Vocus noted it will operate a network of more than 50,000km of owned or leased fiber, close to 15,000km of international submarine cables, and around 20,000 connected buildings.
As part of the deal, Vocus will also acquire TPG Telecom’s PPC-1 submarine cable which runs from Sydney to Guam.
“This agreement is transformative for Vocus and is an important step towards creating a more competitive landscape for the Australian telecommunications industry,” added Jarrod Nink, interim chief executive officer at Vocus.
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