A $6.3 billion play by Vocus Group for TPG Telecom’s fibre asset will not proceed, with the two sides unable to navigate the “complexity” of the deal or agree to commercial terms.
TPG Telecom said in an ASX filing [pdf] that it has now “ceased discussions” with Vocus Group for a potential buyout of some of its enterprise, government and wholesale assets.
Vocus made a non-binding bid for the assets back in August.
While extended due diligence was performed and discussions had been continuing, the two sides ultimately could not reach agreement.
“The proposed transaction involved considerable complexity and, ultimately, the parties have been unable to reach alignment on the operating model and commercial terms for TPG to have sufficient confidence that a successful transaction can be agreed and executed,” TPG Telecom said.
TPG Telecom said that outside of Vocus, there continued to be “ongoing strong interest from potential strategic and financial investors” in the fixed infrastructure assets.
The telco said it would “continue to assess value-optimising alternatives” to the Vocus bid.
A Vocus Group spokesperson has been contacted for comment.
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