TPG Telecom, Vocus revive $4.1 billion fibre sale talks

:TPG Telecom has revived discussions with Macquarie-backed Vocus Group for the sale of some of its non-mobile fibre assets, the Australian telecom operator said on Monday, nine months after ending previous talks over the same divestment.
Australian data services company Vocus Group in August 2023 bid for some of the non-mobile fibre assets of TPG Telecom, one of the country’s largest telecom operators, valuing the assets at about A$6.3 billion ($4.10 billion).
Vocus, backed by Macquarie Group and pension fund Aware Super, abandoned the deal to buy TPG’s fibre network in November though as the parties failed to agree on commercial terms.
Vocus had made a non-binding offer to acquire certain Enterprise, Government and Wholesale (EGW) assets and associated fixed infrastructure assets, including wholesale broadband business Vision Network.
The EGW unit contributed around 18 per cent to TPG’s total fiscal 2022 revenue of A$5.42 billion, while Vision Network currently has a network of more than 410,000 homes in six major Australian capitals and three regional Victorian cities, according to its website.
TPG, whose shares advanced 2.5 per cent, said on Monday the renewed discussions were non-exclusive and there was no certainty a deal would result.
“Investors will be encouraged to hear that a deal could again be in the works from a balance-sheet perspective,” said Tim Waterer, chief market analyst, KCM Trade.
The offer comes after TPG Telecom’s asset swap deal with bigger rival Telstra Group – which involves Telstra buying spectrum and transmission towers from TPG, and the latter selling 4G and 5G coverage using Telstra infrastructure – was blocked amid strong regulatory opposition.
“TPG will be hoping for a better outcome on the regulatory front than what transpired on the ill-fated Telstra deal,” Waterer said.
Vocus declined to comment.
The Australian Financial Review had reported earlier that the parties recommenced discussions over the sale of the fibre network.
($1 = 1.5363 Australian dollars)