07-May-2020: FIRB approval obtained and HTA: FIRB Approval of VHA/TPG Merger
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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From VHA:
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.