TPG Telecom has revealed it is in talks to potentially sell its non-mobile fibre assets to Vocus in a deal worth approximately $6.3 billion.
Announced on the Australian Securities Exchange in response to an article by The Australian Financial Review, TPG said Vocus had made an indicative, highly conditional, non-binding offer to acquire certain assets within its enterprise, government and wholesale segments and associated fixed infrastructure assets, including Vision Network, for roughly $6.3 billion.
The potential offer came following TPG’s strategic review of its wholesale residential fixed access business Vision Network, which saw Bank of America brought in to assist with the review, as announced in October last year.
TPG said in its ASX statement that Vocus’ offer is subject to a myriad of conditions, including exclusive due diligence, which is set to expire on 6 September.
“Discussions between the parties remain incomplete and transaction terms are subject to ongoing negotiation,” the statement continued.
“Securityholders should be aware that the board of TPG has not made any decision to accept any offer and there is no certainty an agreed transaction will eventuate. If a transaction is able to be agreed, it would also remain subject to a range of conditions, including relevant regulatory approvals.
“TPG will keep the market updated in accordance with its continuous disclosure obligations.”
In response to TPG's statement, Vocus released one of its own, stating that it "continually assesses potential strategic opportunities that may enhance its offering to customers and support its long-term growth ambitions".
“Discussions with TPG are confidential, subject to conditions and regulatory approvals. Accordingly, there is no certainty a transaction will be agreed,” it added.