Vocus will gain 24,000 km of fiber, 7,000 km of international submarine cables and 20,000 connected buildings from TPG
Australia’s TPG Telecom revealed Monday it will sell its fiber and fixed network infrastructure assets Macquarie Asset Management and Aware Super’s telecommunications group Vocus for $3.54 billion.
Once finalized, the deal will see Vocus assume ownership of TPG’s enterprise, government and wholesale (EG&W) fixed business, as well as its fiber network assets and wholesale residential Vision broadband business. All in all, Vocus will gain 24,000 km of fiber, and when combined with its existing 27,000 km network, the company will become one of the largest fiber network players in Australia. In addition, Vocus will own approximately 15,000 km of international submarine cables, and almost 20,000 connected buildings after the deal is complete. Under the terms of the deal, Vocus will provide fixed network services back to TPG.
For TPG, the sale will provide net cash proceeds between A$4.65 billion and A$4.75 billion, which the company said will be used for the management of capital and other investments. “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 options to optimize our capital structure,” said Iñaki Berroeta, CEO of TPG Telecom, in the stock exchange filing.
Berroeta also said that the deal will benefit customers: “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 connectivitysector with strength in international, inter-capital, regional and metropolitan connectivity. It will also extend Vocus’ premium connectivity and collaboration offerings to TPG Telecom’s Enterprise, Government and Wholesale fixed customers,” he said.
According to the same filing, the transaction is subject to regulatory approval and is expected to be finalized by the second half of 2025.
