The merged entity will be now be known as "TPG Telecom" (same as they were before) but they will have a new ASX ticker code from tomorrow (30-June-2020) - which will be TPG (instead of TPM). TPM will no longer be a valid ticker code (from COB today).
13-Feb-2020: TPG welcomes Federal Court decision regarding merger
TPG welcomes Federal Court decision regarding proposed merger with VHA
TPG Telecom Limited (ASX: TPM) (TPG) is pleased to note the judgment by the Federal Court of Australia that the proposed merger of TPG and Vodafone Hutchison Australia Pty Limited (VHA) via a Scheme of Arrangement (Scheme) will not, and is not likely to, substantially lessen competition.
TPG’s Directors continue to unanimously recommend that all shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to the Independent Expert concluding that the Scheme is in the best interests of TPG shareholders.
Each TPG Director intends to vote in favour of the Scheme in relation to the TPG shares in which they have an interest, in the absence of a superior proposal.
The implementation of the Scheme remains subject to a number of conditions, including approvals from other regulatory bodies, the Federal Court and TPG Telecom shareholders. TPG and VHA are together working to complete the merger transaction as soon as possible. Subject to approvals, it is anticipated that the merger will be completed in mid-2020.
TPG Executive Chairman, David Teoh, said: “TPG is very pleased with the Federal Court decision and looks forward to combining with VHA to create Australia’s newest fully integrated telecommunications operator. We will work to finalise the other conditions to the merger as soon as possible.”
TPG will release its results for the half-year ended 31 January 2020 on 5 March 2020.
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Also: 13-Feb-2020: HTA: Federal Court Judgement - Vodafone/TPG Merger Approval
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With that uncertainty removed, and the final pillar of the TPG telecommunications empire now back in place - their mobile network - TPG (ASX: TPM) look very interesting again.
05-Mar-2020: As well as reporting that the ACCC have themselves just announced that they do NOT intend to appeal the recent decision by the Federal Court to overturn the ACCC's decision to block the merger between TPG and Vodafone Hutchinson (which I reported in a different straw to this one) - which gives TPG a straight run now to merge with Vodafone and use their existing mobile phone network - TPG (ASX:TPM) have also announced their HY20 results this morning:
The headline numbers were nothing special, but the outlook for TPG from here is pretty exciting I expect.
05-March-2020: AXX: ACCC won't appeal court's TPG-Vodafone merger decision
Full steam ahead for TPG Telecom now. Their decision last year to halt the roll-out of their own mobile network has now been vindicated. They are now free to merge with Vodafone and they can then modify and expand the existing Vodafone mobile network, making TPG a true full-service Australian telecommunications provider, which can seriously compete against Telstra and Optus.
The ACCC says that they (the ACCC) do NOT have grounds for appealling the recent Federal Court's decision (as they can't establish an "error of law" by the judge in those proceedings), so will not appeal. I'm seeing a pattern forming here. Pretty much whenever an Australian company takes the ACCC to court to overturn a decision that the ACCC has made to block a merger or takeover - the ACCC loses. In this case, I think the right decision was arrived at in the end. I don't currently own any TPG, but they're on my watchlist. I'd like the hype from this positive news to die down a little before re-initiating a position in TPG (ASX:TPM) at a lower price point.
30-Jan-2019: Just on David Teoh's strategy - remembering that he's probably the smartest Telco manager we have in Australia - the decision to halt their Australian mobile network roll-out is probably more to do with removing the main obstacle to the merger with Vodafone, as explained in this article: https://www.abc.net.au/news/2019-01-29/tpg-stops-rollout-of-what-would27ve-been-australia27s-fourth-/10757648
From that article:
Analyst says decision was 'easy way out' for TPG, Vodafone
The Australian Competition and Consumer Commission (ACCC) is currently assessing a proposed merger between TPG and Vodafone and had signalled it could block the deal due to concerns it might reduce competition by removing a potential fourth mobile network from the market.
Independent telecommunications analyst Paul Budde told the ABC TPG's decision likely has more to do with the merger.
"It's an easy way out for TPG to abandon now its mobile plans, and obviously save themselves billions of dollars, because of the proposed merger," said Mr Budde.
While Mr Budde said the Federal Government's ban was a major setback for TPG and other Australian telcos, as Huawei is cheaper than other equipment providers, he described it as a "convenient situation" for TPG and Vodafone.
"I can see that [the Huawei ban] plays a role but, at the same time, the overarching situation with TPG and Vodafone having two networks, I think that's an easy way out for them to now go to simply one network," he said
12-June-2020: How do you get your SP to rise on a day when the ASX200 and the All Ords are both down by between 1.5% and 2%?
Here's how: TPG Special Dividend
Pursuant to section 7.3 of the Scheme Booklet released to shareholders on 19 May 2020, TPG Telecom Limited (ASX: TPM) (TPG) is pleased to advise the expected quantum of the TPG Special Dividend.
Subject to the Scheme becoming Effective and the TPG Board resolving to pay the TPG Special Dividend (which the TPG Board intends to do once the Scheme has become Effective):
Update on Scheme Meeting and Extraordinary General Meeting (EGM)
As a result of the potential health risks and the government’s restrictions on public gatherings in response to the COVID-19 pandemic, TPG Shareholders will not be permitted to physically attend the Scheme Meeting and the EGM to be held on Wednesday, 24 June 2020 at 10.30am (Sydney time).
TPG Shareholders are encouraged to lodge a directed proxy in advance of the Scheme Meeting and EGM. Proxy forms must be submitted to the TPG Share Registry by 10.30am on Monday, 22 June 2020. TPG Shareholders can lodge their proxies by following the instructions on their personalised proxy forms or as set out in the Scheme Booklet.
As detailed in the Scheme Booklet, TPG Shareholders can participate in the Scheme Meeting and EGM online at https://web.lumiagm.com or using the Lumi AGM application. TPG Shareholders will be able to follow the meetings live, vote on resolutions, and ask questions online. Further information about attending the meetings online or using the Lumi AGM application can be found in the Notices of Meeting in the Scheme Booklet.
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Despite this positive news, I don't think TPG (TPM) look particularly appealing at these levels, close to their 12-month high of $8.78 achieved just 2 weeks ago. The merger with Vodafone going ahead is certainly a positive, but it's still a very competitive landscape for Telcos and the nbn has levelled the playing field somewhat. I think TPG look far more attractive down around $7/share.
TPG Telecom Limited (ASX: TPM) is pleased to advise shareholders that another key condition precedent to its merger with Vodafone Hutchison Australia Pty Ltd (VHA) has been satisfied with VHA having received Foreign Investment Review Board (FIRB) approval permitting the merger to proceed.
TPG and VHA are continuing to work towards completion of the merger in mid-2020. The merger will be implemented via a Scheme of Arrangement and a Scheme Booklet outlining the information TPG shareholders require to evaluate the Scheme will be released in the coming weeks ahead of a Scheme Meeting at which TPG shareholders will have the opportunity to vote on the Scheme.
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VHA merger with TPG Telecom receives final regulatory approval
Foreign Investment Review Board gives green light
7 May, 2020: Vodafone Hutchison Australia (VHA) is pleased to have received Foreign Investment Review Board (FIRB) approval to allow its merger with TPG Telecom Limited (TPG) to proceed.
VHA Chief Executive Officer Iñaki Berroeta said the FIRB approval meant the merger process was now well underway.
“The merger is now another significant step closer to reality, and we’re progressing our plans to bring the two companies together mid-year,” Mr Berroeta said.
“The Scheme Booklet will be released in coming weeks and submitted to TPG shareholders for approval, Australia will soon have a third fully-integrated telecommunications company for the first time.
“Using our increased strength and scale, our priorities will be accelerating our 5G plans, delivering the benefits to consumers and investors, and challenging the status quo.”
The merger of VHA and TPG will be implemented via a Scheme of Arrangement. The Scheme Booklet outlines the information TPG shareholders require to evaluate the Scheme and will be released in coming weeks. A Scheme Meeting will later be held for TPG shareholders to vote on the Scheme and allow the Scheme to proceed to the court for final approval.
VHA is working to finalise all other processes required for its listing on the Australian Securities Exchange and expects the merger to be completed in mid-2020 and with an effective date in the first half of the year.
VHA will continue to keep customers and the market informed of progress towards merger completion.
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Earlier in the day, at their AGM, HTA's (Hutchison Telecom Australia's) Chairman said, "The merger recently received the required clearances from the Committee on Foreign Investment in the United States and the US Federal Communications Commission, with a decision from the Foreign Investment Review Board expected shortly."
That FIRB decision was received within hours apparently and was announced later in the day.
HTA own half of VHA and after the merger, HTA will own 25.05% of the combined group, which will be known as TPG Telecom Ltd. The "new" TPG - the combined TPG and VHA - will have a value of approximately $15 billion. While David Teoh, who built TPG up from nothing to what it is today, may not hold the top job under the new structure, he will still be the driving force within the company and be making the main strategic decisions you would expect. He's always the smartest guy in the room, particularly when it comes to telecommunications. If there is anybody in the industry who is better than Teoh, I certainly haven't heard about them.
30-Apr-2020: Singapore 5G Call for Proposal Outcome
TPG Telecom Limited (ASX:TPM) advises the market that it has been informed by the Infocomm Media Development Authority (IMDA) that TPG Telecom Pte Ltd (TPG Singapore) will not be allocated spectrum in the 3.5 GHz band in Singapore (3.5 GHz Spectrum).
The IMDA conducted a 5G Call for Proposal process under which only two 3.5 GHz Spectrum licences were to be allocated to mobile network operators in Singapore for the development of 5G networks in the nation.
The IMDA has put in place requirements for the supply of services by the successful parties to unsuccessful respondents and TPG Singapore expects to look at all options for the delivery of 5G services to TPG customers in the future.
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Summary: TPG (ASX:TPM) will not be allocated spectrum in the 3.5 GHz band in Singapore, which means it will have to rely on other participants to deliver 5G to customers there.