Home > Communication > TPG Shares Up 18% After Confirmed Vodafone Merger Talks

TPG Shares Up 18% After Confirmed Vodafone Merger Talks

Shares in TPG Telecom have soared 18.60% after midday, following confirmation the budget telco is in merger talks with Vodafone Hutchinson Australia – a deal tipped to create a $10 billion telco powerhouse.

The news follows reports earlier today, claiming UBS and Macquarie Capital investment bankers are working on the proposed merger.

In a published ASX statement, TPG Telecom confirms its engaged in “exploratory discussions” with Vodafone Hutchinson Australia over a “merger of equals” between the two companies.

At this stage, TPG warns there’s no certainty a transaction will occur, nor the terms of the agreement.

Investors have responded positively to the news, sending TPG Telecom shares soaring 18.60% to $7.46 by 2:44pm.

TPG asserts it will continue to keep the market informed “in accordance with its continuous disclosure obligations.”

The merger is tipped to provide a notable rival to Telstra and Optus, following synergies between Vodafone’s telecom towers, and TPG and iiNet’s fibre networks.

Around half of Vodafone Australia is reportedly owned by its British parent, with the remainder controlled by Hutchison Telecommunications Australia (a subsidiary of CK Hutchison).

Today’s merger confirmation follows initial speculation in 2015, with commentators questioning the ACCC’s response.

Should the deal be executed before TPG’s bid on 5G spectrum, consensus is major concerns could be alleviated.

 

 

You may also like
Foxtel Fined $25K For Telemarketing Breach
Stan Snares Disney Away From Netflix
UK-Based Dense Air Extends Oz 5G Reach
ACCC Concerned About TPG-Vodafone Merger, Shares Slump
Netgear Launch Fastest Gaming Router Yet