TPG Telecom is revisiting a potential sale of its fiber network to Vocus, with both companies now engaged in “non-exclusive discussions.”
It comes after Vocus’s previous $6.3 billion bid for TPG’s fixed infrastructure assets, made a year ago, was shelved in November 2023 due to complexities and unresolved terms.
According to TPG it would continue assessing value-optimising alternatives for its fixed infrastructure assets as part of a strategic review.
“Vocus Group and TPG have engaged in non-exclusive discussions as part of that strategic review process,” it said.
“There is no certainty a transaction will eventuate from the current discussions,” it added, noting the inability of the two parties to previously agree terms.
Despite the renewed talks, TPG’s share price has continued its downward trend, closing 2% lower on the day and nearing a ten-year low, only slightly better than an earlier dip this year. Over the past nine months since the failed deal, TPG’s share price has dropped by more than 15%.
This isn’t the first time TPG has revisited a previous deal; recently, the company announced an access-sharing alliance with Optus after a similar proposal with Telstra was blocked
As of the end of June, TPG Telecom ranks as Australia’s third-largest mobile provider with 5.5 million subscribers, trailing behind Telstra with 17.7 million and Optus with 10.6 million, according to GSMA Intelligence data.
