Es­sen­tial tech news

COM­BIN­ING IN­FRAS­TRUC­TURE TO TACKLE TEL­STRA AND OP­TUS DOM­I­NANCE.

TechLife Australia - - WELCOME - [ SHARMISHTA SARKAR ]

THE WHIS­PERS OF a merger be­tween Voda­fone Hutchi­son Aus­tralia (VHA) and TPG have now been con­firmed, with the two tel­cos re­cently an­nounc­ing they’ve en­tered into a “merger of equals trans­ac­tion to es­tab­lish Aus­tralia’s lead­ing chal­lenger full-ser­vice telecom­mu­ni­ca­tions provider”. Ac­cord­ing to a state­ment re­lease by TPG, “The merger will cre­ate a more ef­fec­tive chal­lenger to Tel­stra and Op­tus, with an in­te­grated fixed and mo­bile of­fer­ing and a pro forma en­ter­prise value of ap­prox­i­mately $15 bil­lion.”

The ‘merger of equals trans­ac­tion’ is how the shares have been divvied up – Voda­fone share­hold­ers will own 50.1% of the shares in the new com­pany, and the other 49.9% will be held by TPG share­hold­ers. Voda­fone and TPG com­ing to­gether joins more than 27,000km of fi­bre and 500 mo­bile sites across the coun­try, with more than 6 mil­lion mo­bile users and 1.9 mil­lion fixed-line cus­tomers. While the merger has been given in­for­mal ap­proval and has been an­nounced at the ASX, the com­pa­nies will also need to be for­mally ap­proved by both the Aus­tralian Com­pe­ti­tion and Con­sumer Com­mis­sion (ACCC) and the For­eign In­vest­ment Re­view Board.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.