Competition for TPG assets

TPG Telecom assets are raising broad interest.

Could it be that the Macquarie-backed Vocus Group is facing some competition in its effort to wrestle $6.3bn worth of assets out of the hands of TPG Telecom?

There’s rumblings that other investors are casting their eye over the TPG Telecom business in what are early stages of weighing a competing play.

KKR’s bid for Telecom Italia’s fixed network this year has shown private equity is willing to step up for these kinds of assets.

Now the question is whether KKR, or another similar sponsor, looks to replicate the play here.

Pension funds like AustralianSuper and Canadian funds are also sure to be weighing their options.

The deal was spawned from the failed sale process for Vision Networks, so the thinking is there are a number of ways a transaction for TPG Telecom assets could be cut.

Ex-JPMorgan deal maker Grant Dempsey was thought to have been brought in to TPG Telecom sell to assets, and while he has announced his departure as CFO, it is believed he is staying on to ensure a deal with Vocus completes.

Vocus looked at TPG’s Vision Networks, but couldn’t make a transaction work without other parts of the business.