VODAFONE, TPG TO BECOME $15B TELCO GIANT

Vodafone Australia and TPG Telecom have agreed to merge into a single $15 billion telecommunications firm in an effort to more effectively challenge telecoms giants Telstra and Optus.

The two companies on Thursday confirmed to the ASX they plan an all-scrip, merger-of-equals, following discussions last week.

Under the deal, TPG shareholders will own 49.9 per cent of the group, with Vodafone Australia shareholders owning 50.1 per cent.

The merged company – to be called TPG Telecom Limited – will have a combined value of about $15 billion and annual revenue of $6 billion.

TPG is Australia’s second largest internet service provider with more than 1.9 million subscribers, while Vodafone is the third largest mobile operator with 6 million subscribers.

Current Vodafone Australia CEO Inaki Berroeta said the merged group will become a stronger challenger to bigger rivals Telstra and Optus.

“The combination of the two companies will create an organisation with the necessary scale, breadth and financial strength for the future,” Berroeta said in a statement.

“The equal terms of the combination preserves the competitive strengths of the two businesses, meaning a sustainable long-term fixed/mobile competitor to Telstra and Optus.”

The big winners of the merger would be Australian consumers, he added. Read more

Gali Blacher - Dynamic Business - 30 August 2018

Comments

We welcome relevant, respectful comments.
Please read our Comment Policy before commenting.
We also welcome direct feedback via Contact Us.
You may also want to ask our librarians.

Be the first to write a comment