TPG-Vodafone Merger Gets Shareholder Approval
By James Fernyhough, Financial Review
June 24, 2020
TPG Telecom shareholders have unanimously voted in favour of the $15 billion merger with Vodafone Hutchison Australia, opening the way for the landmark deal to be complete by the end of the month.
The two companies will become one ASX-listed telecom giant headed by Vodafone chief executive Inaki Berroeta, with TPG’s billionaire founder and executive chairman David Teoh taking the role of non-executive chairman.
The vote was uncontroversial, with no shareholders submitting questions, and 99.99 per cent voting in favour of the deal.
It marks the end of a two-year-long saga that saw the competition regulator opposing the merger, only for the decision to be overturned in the Federal Court.
“The merger brings together two highly complementary businesses to create a leading integrated, full-service telecommunications company with a comprehensive portfolio of fixed and mobile products for consumers, SMEs and enterprises,” Mr Teoh said on Wednesday.
“Combining the network infrastructure of TPG and VHA will enable the Merged Co to deliver better services and more competitive value propositions to Australian customers and become a more formidable competitor in the market.”
Before the merger TPG shareholders will receive a fully-franked special dividend of between 49¢ and 52¢ per share. The company’s Singapore operations will be hived off and listed on the ASX as a separate company called Tuas.
The scheme will go before the Supreme Court of NSW on Friday. Pending approval, TPG will lodge the orders of the court with the Australian Securities and Investments Commission on June 29.
TPG will then merge into Vodafone Hutchison Australia, which will change its name to TPG Telecom and list on the ASX under the ticker TPG on June 30, when trading will commence on a deferred settlement basis. Ordinary trading will begin on July 14.
“Today is a significant milestone in the merger process and subject to final court approval, we will be bringing VHA and TPG together in two and a half weeks,” Mr Berroeta said.