Vocus is again talking to TPG about buying its fibre networks

Macquarie-backed Vocus Group is again talking to TPG Telecom about buying its fibre networks, nine months after its previous $6.3bn proposal fell over.

Ownership of TPG’s fibre network is under review.

Almost a year to the day after speculation about Vocus Group aiming to snap up TPG Telecom’s fibre network was floated, the latter company has confirmed talks are once again under way.

And once again the message to shareholders is that there is no certainty any deal will go through, with TPG drawing attention to last year’s failed talks.

On August 1 last year TPG confirmed to the ASX that it was talking to Macquarie-backed Vocus about the potential sale of its non-mobile fibre assets, with a price tag of $6.3bn later revealed as the bid price.

During that process TPG warned repeatedly that “the nature of the transaction involves considerable complexity which needs time to work through and there remains no certainty an agreed transaction will eventuate’’.

In mid-November the talks were discontinued with TPG saying they were “unable to reach alignment on the operating model and commercial terms for TPG to have sufficient confidence that a successful transaction can be agreed and executed’’.

TPG managing director Inaki Berroeta told the company’s annual meeting in May that a strategic review into the fibre assets was ongoing.

“These assets include our Vision Network wholesale business and the extensive fibre networks we own and operate around the nation - the value of which is not fully reflected in TPG Telecom’s share price,’’ he said.

“Following our decision to cease discussions with Vocus last November, we are continuing to explore value-optimising options around these assets and will update the market as we fully explore this opportunity.’’

TPG said on Monday that Mr Berroeta’s statements at the annual meeting remained accurate.

“At the TPG annual general meeting on May 3, 2024, TPG confirmed previous statements that it would continue assessing value-optimising alternatives for its fixed infrastructure assets as part of a strategic review,’’ the company said.

“Vocus Group and TPG have engaged in non-exclusive discussions as part of that strategic review process.

“Securityholders should be aware that TPG’s discussion with Vocus Group in 2023 did not lead to a transaction and there is no certainty a transaction will eventuate from the current discussions.

“TPG will keep the market updated in accordance with its continuous disclosure obligations’’.

TPG shares were 0.6 per cent lower at $4.57 at about midday Monday.

Originally published as Vocus is again talking to TPG about buying its fibre networks