TPG Telecom has cleared the final regulatory hurdle to completing the A$5.25 billion (US$3.41 billion) sale of its fixed line infrastructure to Vocus Group with the transaction receiving Australian Government approval.
The telecommunications company said Vocus had informed it that the Foreign Investment Review Board (FIRB) had approved the purchase of TPG’s fibre network infrastructure assets and Enterprise, Government and Wholesale (EGW) fixed operations.
The company said that the FIRB had advised Vocus that the Government had no objection to the transaction, marking the last regulatory approval needed to complete a deal that will deliver net cash proceeds to TPG of $4.650 billion to $4.750 billion.
“Completion of the transaction remains subject to satisfaction of other remaining conditions precedent, including completion of an internal restructure,” TPG said in an ASX announcement.
The transaction, which was announced last year, received approval from the Australian Competition and Consumer Commission (ACCC) earlier this year.
TPG, whose brands include Vodafone, TPG, iiNet and AAPT, pitched it as an important part of a strategy to simplify its business and accelerate and increase the streamlining of its operating structure and cost base.
TPG shares (ASX: TPG) closed 10 cents (0.19%) higher at $5.36 on Monday, which capitalises the company at $9.95 billion.
Vocus, jointly owned by Macquarie Asset Management and Aware Super since a $4.6 billion takeover in 2021, becomes one of the largest owners of underground fibre infrastructure in Australia with this deal.
