TPG - TPG Telecom

Year and a half on the TLS sharing offer got scuttled.

Now considering an offer from VOCUS Group.

NAB trade sent me out an email under the title "Three undervalued ASX stocks reporting strong results"

I'll wait and see what happens with the Vocus due diligence.

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bought this when TPM was the ticker code and sold shortly after David Teoh left ( @ $4.94 in March 2023) after buying @ $1.40

i kept and added to the TUA divestment which i still hold

telcos in Australia , not any more thanks too much political risk

( i hold SPK and TUA )

Update on discussions with Vocus Group Further to its market announcements on 1 August 2023 and 6 September 2023,

TPG Telecom Limited (ASX: TPG) advises that the exclusive due diligence period granted to Vocus Group in relation to its proposed acquisition of certain of TPG’s Enterprise, Government and Wholesale assets and associated fixed infrastructure assets, including Vision Network, has now expired.

Discussions between the parties in relation to the commercial terms remain ongoing. As noted in our 1 August 2023 announcement, the consideration of $6.3 billion and the highly provisional indicative EBITDA perimeter of approximately $550 million are subject to change.
TPG securityholders should be aware that the nature of the transaction involves considerable complexity which needs time to work through and there remains no certainty an agreed transaction will eventuate.
If a transaction is able to be agreed, it would also remain subject to a range of conditions, including relevant regulatory approvals.
TPG will keep the market updated in accordance with its continuous disclosure obligations.

Authorised for lodgement by the Continuous Disclosure Committee.

i do not hold this share , but have in the past

Will the current market bull run sustain itself long enough for TPG to fill the gap at 5.43? Or to the even bigger one at 6.27? Will TPG have enough beta to the market for it to matter?



Vodafone subsidiary recently raising prices 9%, hopefully demonstrating some pricing power

InsvestoBoy said:

Will the current market bull run sustain itself long enough for TPG to fill the gap at 5.43? Or to the even bigger one at 6.27? Will TPG have enough beta to the market for it to matter?

Click to expand...

Up 4% today on no news to just 1c below the gap...pop and drop on Monday?

Annual net profit has dropped to $49 million from $513 million a year earlier as expenses rose, driven by higher telecommunications tower leasing costs and increased interest rates on debt.

TPG also took a $17 million impairment charge after deciding to wind up its Internode internet brand and move customers to its iiNet brand.

Underlying EBITDA, excluding the impairment charges and $69 million of transformation and transaction costs, rose 9 per cent to $1.9 billion.

There is a final dividend of 9¢ per share, flat on a year earlier.

ended down quite a bit on the 1H,

from around the traps, some post the fact analysis. (I'd reckon SOL would be leaning hard):
"One CEO that needs no reminding that the goal is to create value for investors is TPG Telecom’s Inaki Berroeta, who oversees No.3 mobile carrier Vodafone. It comes up multiple times in a chat with him post the group’s full-year result.

"While service revenue was up 4.3 per cent and adjusted EBITDA jumped 9.4 per cent last year, the big reveal was 2024 EBITDA guidance. At $1.95 billion to $2.025 billion, it was a bit less than the market expected and saw TPG shares drop nearly 10 per cent.

"Berroeta was philosophical about the drop – he says he is investing in the business and transforming it for the long term, which is hard to capture in a set of last year’s numbers or this year’s guidance.

"He hasn’t given up on finding a way to boost TPG’s regional network coverage. It sounds like he’s thinking along the same lines as last year’s blocked network sharing deal with Telstra – sharing infrastructure, domestic roaming, working with another mobile network owner – just not in the same shape and form.
“What is clear is that investing in regional infrastructure in Australia, the economics are not there,” he says. “The solution is more around co-investing."

TPG Telecom will market its mobile phone services to more Australians after the competition regulator said it could share networks with Optus in regional areas.

more redistribution...

TPG has entered into a binding agreement to sell its fibre network infrastructure assets and Enterprise, Government and Wholesale (EGW) fixed business, including Vision Network, to Vocus Group Limited for an enterprise value of $5,250 million including a potential $250 million Contingent Value Payment. TPG will retain its mobile radio network infrastructure, Consumer and EGWmobile business and its Consumer and small office/home office fixed retail business, including fixed wireless. Vocus will provide fixed network services back to TPG as part of the Transaction terms.

The parties are targeting completion of the Transaction in the second half of 2025 subject to satisfaction of conditions precedent, including regulatory approvals... At completion, TPG anticipates the Transaction will deliver net cash proceeds to the Company of $4,650 - $4,750 million. TPG intends to use these proceeds to support future capital management and business investment initiatives. Details of such future initiatives have not yet been determined and remain subject to development. TPG anticipates providing more detail to the market around the time of Transaction completion.

TPG Telecom CEO Iñaki Berroeta said: “We are pleased to announce this transaction and the successful conclusion of the strategic review of our fibre network infrastructure assets. 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. The deal unlocks the value of our fixed infrastructure assets while strengthening our financial position and creating a more focused and streamlined business with significant optionality for the optimisation of our capital structure.”
“This is also a great outcome for large customers for fixed telecommunications services in Australia. The transaction will create a challenger of scale in the enterprise connectivity sector with strength in international, inter-capital, regional and metropolitan connectivity...