SYDNEY: Australian broadband provider TPG Telecom Ltd said on Monday it would sell its passive mobile tower and rooftop infrastructure assets to Canadian-based OMERS Infrastructure Management Inc for A$950 million ($670 million). dollars).
The sale of the assets, which include over 1,200 sites and represent approximately 21% of TPG’s mobile network footprint, will generate net cash proceeds of A$890 million, which will be used to repay existing bank debt, did he declare.
“The transaction represents competitive long-term financing, which will reduce our total financial leverage and reduce borrowing costs,” said TPG Chief Executive Iñaki Berroeta.
The deal is the latest in a wave of telecoms asset sales in Australia, where companies are increasingly looking at options for their aging infrastructure as they try to capitalize on 5G growth.
Toronto-based OMERS had C$32 billion ($24.78 billion) in assets under management and investments in 12 countries at the end of last year, according to its website. He did not immediately respond to a request for more details on the deal.
TPG said it would recognize a gain of around A$350-400 million after tax on the deal.
The deal is subject to approval by Australia’s Foreign Investment Review Board and is expected to close in the third quarter of fiscal 2022, TPG added.
($1 = 1.4178 Australian dollars)
($1 = 1.2915 Canadian dollars) – Reuters