TPG Telecom has announced the opening of its reinvestment plan, giving eligible minority shareholders the option to reinvest their $1.61 per share cash distribution into new shares of the company. This non-underwritten plan has the potential to raise up to $688 million, divided into an institutional component aiming for $550 million and a retail component projected to raise $138 million. TPG Telecom provides fixed and mobile telecommunications services to consumers, businesses and wholesale customers in Australia.
The institutional shares are priced at $3.61 each, representing a 5 per cent discount compared to last Friday’s closing price. Allocations of these shares will be at the discretion of the company. Retail investors have the opportunity to participate in the reinvestment plan from November 20 to December 5. Additionally, a top-up facility will be available to retail investors, subject to potential scale-backs depending on demand.
The primary objectives of the reinvestment plan are to bolster minority ownership within TPG Telecom, enhance the company’s liquidity, and maintain its free float following the recent $3 billion cash return to shareholders. This initiative underscores TPG’s commitment to a balanced capital structure and shareholder value.
TPG Telecom has reaffirmed its financial year 2025 EBITDA guidance, which remains in the range of $1.6 billion to $1.65 billion. The company has revised its capital expenditure expectations for the same period, now forecasting approximately $770 million.
