Australian firm TPG Telecom has received a bid from Macquarie-backed Vocus Group to buy its fixed network infrastructure assets for about A$6.3bn (€3.8bn).

In response to media reports, TPG said that it had previously announced a strategic review of its wholesale residential fixed access business, Vision Network, in October 2022.

As a result, the company received a number of non-binding expressions of interest in its non-mobile assets.

“As part of that process, Vocus Group made an indicative, highly conditional, non-binding offer to acquire certain of TPG’s Enterprise, Government and Wholesale (EGW) assets and associated fixed infrastructure assets, including Vision Network, for approximately A$6.3bn.

“The indicative offer is conditional upon a number of matters, including due diligence, debt financing, finalisation of transaction documentation, and approvals of the respective boards of TPG and Vocus Group,” TPG said.

TPG has granted Vocus Group a period of exclusive due diligence, set to expire on 6 September 2023.

The EGW unit contributed around 18% to TPG’s total fiscal 2022 revenue of A$5.42bn, while Vision Network currently services more than 400,000 homes in six Australian capitals and three regional Victorian cities.

TPG sold its mobile towers and rooftop infrastructure to OMERS last year in a deal worth A$950bn.

ASX-listed TPG, which has a market valuation of A$9.33bn, was the last of Australia’s three big telcos to off-load its towers arm.

In October 2021, Optus sold 70% of its towers business to AustralianSuper for A$1.9bn while Telstra sold a 49% stake in its towers business for A2.8bn to a consortium that included Australia’s Future Fund, Australian Retirement Trust and the Commonwealth Superannuation Corporation.

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