Allens has advised TPG Telecom on an agreement to sell its fibre network infrastructure and its enterprise, government and wholesale (EGW) fixed line business to Vocus Group Limited for an enterprise value of $5.25 billion.
The sale will include all of TPG Telecom's fibre and fixed line network infrastructure, its EGW fixed line business, its PPC-1 international submarine cable system and its wholesale broadband business, Vision Network.
The sale price is inclusive of a potential $250 million contingent value payment related to subscriber targets for the Vision Network business.
TPG will retain its mobile and radiocommunications network infrastructure, consumer and EGW mobile business and its consumer and small office/home office fixed retail business, including fixed wireless.
The deal also includes a long-term strategic partnership between TPG and Vocus, with Vocus to provide TPG with ongoing access to its fibre infrastructure.
Allens acted for TPG Telecom on the strategic review of its Vision Network business in 2022. The firm then advised TPG Telecom on negotiations with Vocus and its owners, Macquarie Asset Management and Aware Super, when the parties decided to explore a larger transaction.
'This transaction demonstrates that telecommunications infrastructure continues to be a highly attractive asset class for financial investors,' said co-lead Partner and Head of Allens' Technology, Media & Telecommunications group, Gavin Smith.
'The pace of digitisation, and the continued growth in requirements for data transmission and storage, means that the physical infrastructure underpinning that trend is highly valued.
'Allens has had a long-standing relationship with TPG Telecom. We are delighted to advise it on this transformational transaction which allows it to unlock the value of its fixed line networks.'
Co-lead Partner Julian Donnan said: 'This deal will allow TPG Telecom to focus on its mobile and its consumer and small office/home office fixed retail business, including fixed wireless. We congratulate the teams at TPG Telecom and its financial adviser, Bank of America, with which we worked closely. We also congratulate the Vocus, Macquarie Asset Management and Aware Super teams'.
The deal cements Allens' position as the leading adviser on telecommunications M&A activity in Australia.
The firm advised on all major Australian and New Zealand telecommunications tower transactions between 2021 and 2024, including: the Morrison and Future Fund investment into Amplitel (Telstra towers); the sale by TPG Telecom of its towers portfolio to OMERS/Waveconn; AustralianSuper on its acquisition of a majority stake in ATN (Optus towers) and the acquisition by ATN of Axicom; Ontario Teachers' Pension Plan's acquisition of a majority stake in Connexa, the Spark New Zealand tower company; Connexa's acquisition of the 2degrees NZ tower portfolio; and NorthLeaf Capital Partners and InfraRed Capital Partnerson their acquisition of Fortysouth, the Vodafone New Zealand towers business. Allens also advised Morrison and Brookfield on its acquisition of Uniti Group.
Allens legal team
Lead partners
Gavin Smith, Julian Donnan
M&A and Capital Markets
Tom Story (Partner), Kimberley Lowrie (Managing Associate), Stephanie Rowan (Senior Associate), Harry Martin (Associate), Will Brown (Senior Associate), Sophie Sitch (Lawyer)
Technology, Media & Telecommunications
Jessica Mottau (Partner), Isabelle Guyot (Managing Associate), David Liao (Senior Overseas Practitioner), Alexandra Martin (Senior Associate), Haddon Chang (Senior Associate), Isaac Nankavill (Associate), Isabelle Orazio (Lawyer), Tasnim Ahsan (Lawyer), Matilda Winnell (Lawyer)
Competition, Consumer and Regulatory
Rosannah Healy (Partner), Robert Walker (Partner), John Yiannakou (Managing Associate), Edison Wang (Senior Associate), Tom Hodgson (Lawyer)
Real Estate & Development
Victoria Holthouse (Partner), Tom Wilson (Senior Associate), Jayne Williams (Senior Associate), Alex Jeffares (Associate)
Banking & Finance
Alan Maxton (Partner), Sarah Denton (Senior Overseas Practitioner), Robert Lau (Senior Associate)
Intellectual Property
Miriam Stiel (Partner), Tommy Chen (Managing Associate), Max Jones (Senior Associate)
Employment & Safety
Veronica Siow (Partner), Sikeli Ratu (Partner), Eden Sweeney (Associate)