TPG Telecom (ASX:TPG)
is set to sell its mobile tower and rooftop infrastructure to Canadian investor OMERS Infrastructure Management for an enterprise value of $950 million.
TPG anticipates that the transaction will deliver net cash proceeds of around $890 million, the enterprise value less total transaction costs, which the company expects to use to repay existing bank debt.
The 1,237 tower assets sites include 428 towers and 809 rooftops. The transaction includes a 20-year term with the option for TPG to extend, and is expected to close in the third quarter of FY22.
“The tower sale demonstrates the disciplined approach we are taking to asset utilisation and capital allocation as we pursue opportunities to unlock value and maximise our potential for customers and shareholders," said TPG chief executive officer Iñaki Berroeta.
"We look forward to working with OMERS to transition the business and then to support its growth as it provides critical telecommunications infrastructure services to our customers and the broader Australian telecommunications sector.’’
Shares in TPG Telecom (ASX:TPG)
are trading 0.7 per cent higher at $5.61.