(Reuters) – TPG Telecom will sell its fiber and fixed network infrastructure assets, including broadband provider Vision Network, to Macquarie and telecoms group Vocus’s Aware Super superannuation fund for A$5.25 billion (US$3.54 billion).
Under the deal, Vocus will acquire TPG’s fiber network assets and fixed, government and wholesale (EG&W) businesses, while the Australian telco said on Monday it will retain its wireless network infrastructure and mobile, fixed and wireless retail businesses.
Vocus will provide fixed network services to TPG as part of the terms of the deal.
The deal comes on the heels of TPG and Vocus resuming talks on the sale of TPG’s non-mobile fiber assets, after halting a similar discussion nearly a year ago.
TPG expects the transaction to generate net cash proceeds of between A$4.65 billion and A$4.75 billion, which the company intends to use for further capital management and other investments.
The EGW unit accounted for about 18% of TPG’s total fiscal 2022 revenue of A$5.42 billion, while Vision Network currently serves more than 410,000 homes in six major Australian capital cities and three regional cities in Victoria, according to its website.
Australian data services company Vocus Group made a bid in August 2023 to buy some of the non-mobile fiber assets of TPG Telecom, one of the country’s largest telecoms operators, valuing the assets at about A$6.3 billion (US$4.10 billion).
The deal comes after TPG Telecom’s asset swap deal with larger rival Telstra (OTC:) – which involved Telstra purchasing spectrum and transmission towers from TPG, and the latter selling 4G and 5G coverage using Telstra infrastructure – was blocked amid strong regulatory opposition.
TPG shares were down 1.7% this year through the end of business on Friday.
($1 = 1.4848 Australian dollars)