Latest news with #Macquarie-backed
Yahoo
21-03-2025
- Business
- Yahoo
Australia greenlights Vocus' takeover of TPG Telecom's fibre, fixed assets
By Rishav Chatterjee and Aaditya GovindRao (Reuters) -Macquarie-backed fibre network Vocus Group is closer to becoming one of Australia's largest owners of underground fibre infrastructure, as the competition regulator approved on Thursday its A$5.25 billion (about $3.3 billion) deal with TPG Telecom. Vocus and TPG, back in October 2024, had agreed to a deal for the former to take over the telecom operator's fibre and fixed network infrastructure assets, enabling Vocus to connect almost 20,000 buildings in Australia. The Australian Competition and Consumer Commission (ACCC) said the deal would not likely result in a substantial reduction of competition in any market. It said that Vocus would continue to face major competition from firms — including Telstra, Singapore Telecommunications-owned Optus — and local players such as Superloop and Aussie Broadband A spokesperson for Vocus said that the ACCC's decision was a positive step, and TPG's complementary assets will allow Vocus to drive competition into the sector. Analysts at Sandstone Insights called the clearance a major turning point for TPG, which resets its balance sheet. "With lower interest costs, a declining opex profile and lower capex requirements, TPG is poised for substantial free cash flow growth for the next 3-4 years," the analysts said. Shares in TPG gained 5% in Sydney, while those of its biggest rival Telstra were up 0.9%. The deal remains subject to Foreign Investment Review Board approval and U.S. regulatory approvals, TPG said. The Australian watchdog's review focused on how closely Vocus and TPG compete in the supply of data network and connectivity services, including fixed-line internet services, to large enterprise and government customers, it said in a statement. The probe found that Vocus focuses on providing services to large enterprise and government clients while TPG concentrates on the small and medium enterprise segment of the market. A Macquarie-managed infrastructure fund, alongside Aware Super, acquired Vocus in 2021, taking the company private and delisting it. ($1 = 1.5721 Australian dollars)
Yahoo
01-03-2025
- Business
- Yahoo
Australia's TPG Telecom hits four-month peak on upbeat earnings
By Rajasik Mukherjee (Reuters) - Shares of Australia's TPG Telecom surged to a more-than-four-month high on Friday after the telco logged a 3.4% rise in its full-year underlying earnings, driven by growing mobile customer numbers. Shares of the country's third-largest telco ended 2.4% higher, after rising as much as 6% earlier in the day to hit their highest since October 21, 2024. The stock posted its biggest intraday percentage gain since August 30. The Sydney-headquartered company said on Friday its earnings before interest, tax, depreciation and amortization (EBITDA), excluding impairment charge and one-off costs, rose to A$1.99 billion ($1.24 billion) for the year ended December 31. Analysts at Jefferies said TPG's earnings were largely in line with their estimates. TPG also logged a 1.5% increase in its service revenue for the year to A$4.70 billion, aided by a higher mobile service revenue and increased prepaid subscribers. "We achieved continued growth in mobile service revenue, expanded gross margin, increased EBITDA in line with our cash flow," said TPG CEO Inaki Berroeta. The telecom firm also reaped the benefits of inking a network sharing deal with Singapore Telecommunications-owned Optus. The deal, which received the thumbs up from Australia's competition watchdog last year, is expected to double TPG's network size. TPG, which last year said they would sell its fibre, fixed assets to Macquarie-backed telecommunications group Vocus for A$5.25 billion, also announced a final dividend of 9 Australian cents per share. The firm said it expects its full-year 2025 EBITDA to be around A$1.95 billion and A$2.03 billion. ($1 = 1.6100 Australian dollars)
