TPG Profit Jumps Ahead Of Proposed iiNet Takeover
The profit jump comes after the recent announcement of TPG’s proposed takeover bid for iiNet.
TPG’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the period increased by 43 per cent to $236.2 million, with TPG raising its full-year EBITDA guidance from $455-460 million to $480-483 million.
TPG’s consumer broadband subscriber base grew by 38,000 in the half year, which was up 2,000 on the growth it achieved in last year’s corresponding period, with the composition of its subscriber growth 21,000 ADSL and 17,000 NBN/FTTB.
In total, TPG had reached 786,000 broadband subscribers and 342,000 mobile subscribers, as at January 31 this year.
The strong results come amid criticism of TPG’s proposed takeover of iiNet, with iiNet founder and former chief executive officer Michael Malone calling for it to be rejected.
As reported by The Australian, TPG chief financial officer Stephen Banfield has stated TPG has been “disappointed by the reaction of certain shareholders”, stating “fair and full value” has been offered for iiNet.
“TPG’s offer provides iiNet shareholders with certainty,” The Australian reported Banfield as stating.
“Certainty of the value of the offer that our full cash offer brings and certainty that the transaction will be completed given that TPG has already arranged its funding and hence has not made the offer conditional on funding nor conditional on due diligence.”
Under the proposed $1.4 billion transaction, first announced on March 13, iiNet shareholders will receive cash consideration of $8.60 per share, with the directors of iiNet having unanimously recommended the scheme.