(Reuters) -TPG Telecom will sell its fiber and fixed network infrastructure, including broadband provider Vision Network, to Macquarie and pension fund Aware Super telecommunications group Vocus for A$5.25 billion ($3.54 billion).
Under the deal, Vocus will acquire TPG’s fixed business and fiber network assets, while the Australian telecom operator said on Monday it will retain its radio network infrastructure, mobile and fixed retail and wireless businesses.
As part of the agreement, Vocus will supply fixed network services to TPG.
The deal comes on the heels of TPG and Vocus resuming talks on the sale of TPG’s non-mobile fiber assets, after halting a similar discussion almost a year ago.
TPG expects the deal to generate net cash proceeds of between A$4.65 billion and A$4.75 billion, which the company plans to use for further capital management and other investments.
The EGW unit accounted for about 18% of TPG’s total 2022 revenue of A$5.42 billion, while Vision Network currently serves more than 410,000 homes in six major Australian capital cities and three regional Victorian cities, the website said.
Australian data services company Vocus Group made a bid for part of the non-mobile fiber assets of TPG Telecom, one of the country’s largest telecoms operators, in August 2023, valuing the assets at about A$6.3 billion ($4 .10 billion).
The deal comes after TPG Telecom’s asset swap deal with larger rival Telstra – under which Telstra buys spectrum and cell towers from TPG, and the latter sells 4G and 5G coverage using Telstra’s infrastructure – was blocked due to strong regulatory opposition.
TPG shares have fallen 1.7% this year after the stock market closed on Friday.
($1 = 1.4848 Australian dollars)
(Reporting by Rishav Chatterjee and Adwitiya Srivastava in Bengaluru; Editing by Lisa Shumaker and Diane Craft)
