The exclusive due diligence period granted to Vocus Group, backed by Macquarie, for its $6.3 billion bid on TPG Telecom’s non-mobile fiber assets has come to an end, according to TPG Telecom.
While discussions on the commercial terms of the deal are ongoing, TPG Telecom stated that the consideration for the transaction may change. They also emphasized that the complexity of the transaction requires time for thorough evaluation, and there is still no certainty that an agreed-upon deal will be reached.
Vocus Group declined to comment on the matter.
The bid, originally made in August, encompasses TPG’s non-mobile fiber assets, including certain Enterprise, Government, and Wholesale (EGW) assets, as well as associated fixed infrastructure assets like the wholesale broadband business, Vision Network. The EGW segment accounted for approximately 20.6 percent of the company’s total revenue for the first half of 2023.
If successful, this deal would result in a combined entity with an enterprise valuation ranging from $8 billion to $9 billion.
Vocus’s offer came amid increased deal activity in Australia’s telecom sector, with companies exploring options to upgrade their aging infrastructure and capitalize on the growth of 5G technology.
In a separate development, TPG Telecom was involved in an asset swap deal with Telstra, which faced regulatory opposition due to concerns about competition. In August, TPG Telecom announced it would not appeal the decision by the country’s competition tribunal to block the asset transfer deal between the two telecom giants.
