TPG Telecom and Vodafone Hutchison Australia in $11 bn merger

It can be yours. Well a bit of

It can be yours. Well a bit of

Australia's TPG Telecom and Vodafone Group's local business said on August 30 that they would combine to create a company with an enterprise value of about A$15 billion ($10.9 billion). The company expects to hold 20 percent of the Australian mobile market share, and 22 percent of the fixed-line broadband market upon merging.

"The merger will create a more effective challenger to Telstra and Optus, with an integrated fixed and mobile offering and a pro forma enterprise value of approximately $15 billion", TPG said in a statement.

Partners Vodafone and Hutchison Telecommunications will each own an economic interest of 25.05 percent in the new entity while TPG shareholders will own the other 49.9 percent.

Vodafone (LON:VOD) has today announced plans that itself and its partner company, Vodafone Hutchison Australia will merge with TPG Telecom.

The deal is expected to be completed next year, after approval from regulators and the competition watchdog. Stocks in TPG Telecom hopped 18%.

Shares in TPG, which had announced plans to build its own wireless network, soared in Sydney on a union with an existing network with 6 million customers.

Separately, TPG said it planned to spin off to its shareholders its mobile business in Singapore, with further details to be provided at a later date.

Vodafone has agreed a mammoth 15 billion Australian dollar (£8.4 billion) deal to merge its Australian operations with TPG Telecom. Vodafone will provide a guarantee on approximately A$2.4bn of this debt, lower than the approximately A$3.3 billion guarantee that Vodafone now provides for VHA's debt.

"The combination of these assets will maximise the opportunities presented by convergence and best position to combined company to invest in 5G technologies that will deliver faster services and offer more competitive value propositions to more Australian customers", TGP said.

The companies also stated that "there are no changes now planned to any of the existing brands of either TPG or VHA".

One of Australia's most acquisition-hungry telcos, TPG, is to merge with mobile carrier Vodafone Australia. David Teoh, who is as of now the CEO and executive of TPG, will turn into the new gathering's director.

Iñaki Berroeta, the chief executive of Vodafone Australia told the media: "The combination of the two companies will create an organisation with the necessary scale, breadth and financial strength for the future".

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