Australia’s TPG Telecom announced plans to sell its fibre and fixed network infrastructure assets to Vocus, a telecommunications group owned by Macquarie and pension fund Aware Super. The deal is valued at A$5.25 billion ($3.54 billion).
As part of the agreement, Vocus will acquire TPG’s enterprise, government, and wholesale (EG&W) fixed business, as well as its fibre network and Vision broadband operations. TPG will retain its mobile and fixed retail businesses, along with its radio network infrastructure. Additionally, Vocus will provide fixed network services to TPG.
The A$5.25 billion price tag represents an 11.2 times 2024 earnings multiple for TPG’s fibre assets, Reuters news report said. Vocus will operate an extensive network that includes over 50,000 kilometers of fibre, 15,000 kilometers of international submarine cables, and nearly 20,000 connected buildings.
There is no change to TPG’s guidance for FY24 EBITDA of $1,950 million to $2,025 million excluding material one-offs and cash capital expenditure excluding spectrum payments of approximately $1,020 million.
TPG Telecom CEO Inaki Berroeta said: “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.”
“Digitisation is a key focus for us, with the increasing need for secure data movement,” said Ani Satchcroft, Macquarie Asset Management’s co-head of Asia Pacific infrastructure.
Macquarie Asset Management has been active recently, finalizing deals worth A$32 billion in six weeks, including a A$24 billion AirTrunk deal and a A$3 billion stake sale in Queensland Airport.
TPG Telecom expects the sale to generate net cash proceeds between A$4.65 billion and A$4.75 billion for future capital management and investments.
This sale follows TPG’s previously blocked asset swap deal with Telstra, which faced regulatory challenges.