Australia’s TPG Telecom has agreed to sell its enterprise, government and wholesale (EG&W) fixed business and fibre network assets to Macquarie Asset Management (MAM) and Aware Super for A$5.25bn (€3.23bn).
MAM and Aware Super are acquiring the business to bolster their jointly-owned fibre business, Vocus.
Under the terms of the agreement, Vocus and TPG will enter a long-term partnership providing TPG with ongoing access to Vocus’ fibre infrastructure.
Post acquisition, Vocus will operate a network of more than 50,000km of owned or leased fibre under long-term right of use arrangements, nearly 15,000km of international submarine cables, and close to 20,000 connected buildings.
Vocus will acquire TPG’s PPC-1 submarine cable which runs from Sydney to Guam, accompanying Vocus’ existing Australia Singapore Cable, North-West Cable system, Darwin-Jakarta-Singapore Cable system, and the in-progress Pacific Connect cable system.
The agreement includes TPG’s fibre network infrastructure, EG&W fixed customer base, IT assets, international submarine cables, and Vision Network’s wholesale residential broadband business.
TPG will retain its mobile radio network infrastructure, consumer and EG&W mobile business, and its consumer and small office/home office commercial fixed business.
Ani Satchcroft, co-head of Infrastructure for Asia Pacific at MAM said: “Today’s agreement builds on our 2022 merger of Vocus’ New Zealand’s operations with 2degrees, which successfully created New Zealand’s third-largest integrated telecommunications company and has driven competition in that market.”
Mark Hector, head of infrastructure at Aware Super said: “This agreement enhances the competitiveness of Vocus in the Australian digital infrastructure sector, offering its customers a greater breadth of services and end-to-end connectivity.”
“It also strengthens the Aware Super digital infrastructure portfolio, a strategic focus for Aware and an area of investment we continue to pursue domestically and offshore in Europe and the US,” he added.
Jarrod Nink, interim chief executive officer at Vocus said: “Digital infrastructure is the foundation of the modern economy, driving growth and innovation, and opening new markets and opportunities.”
Nink said investment and competition in this industry was critical for Australia’s future Vocus and TPG’s fibre assets served largely complementary segments of Australia’s EG&W sector.
MAM and Aware Super bought Vocus for A$3.5bn in 2021.
