TPG Telecom sells passive tower assets for A$950m


Image: TPG Telecom

TPG Telecom announced Monday morning that it has reached an agreement valued at A$950 million to sell its passive tower assets to the infrastructure management arm of Ontario municipal employees’ pension fund, OMERS.

The company said that once transaction fees were removed, it planned to bank A$890 million, which would be used to pay down debt. The deal covers 1,237 sites across 428 towers and 908 rooftop sites, as well as 252 in the pipeline.

“This represents approximately 21% of TPG Telecom’s total mobile network footprint, the remainder of which is already owned and operated by other tower companies,” TPG said.

The asset purchases include 120 sites. TPG said it would be decommissioned as part of its February deal with Telstra to share spectrum and access to the regional network.

A 20-year agreement between TPG and OMERS has been signed, with TPG having an option to extend.

Over the past year, the other major Australian carriers have sold stakes in their respective tower networks. Telstra started by selling a 49% stake in Amplitel to a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and Sunsuper for A$2.8 billion, while Optus’ parent company Singtel sold a stake of 70% in its A$1.9 billion tower business at AustralianSuper.

Elsewhere on Monday, Spirit announced it had agreed to sell its wholesale fixed wireless assets for A$21 million to Melbourne-based Maret Group. Spirit said it would retain revenue and customer relationships, as well as core network assets, while Maret would charge it a last-mile service fee.

Spirit said the pair would use Maret’s spectrum assets to create new products for Spirit to sell, and the proceeds from the sale would be used to bolster its SMEs and cyber arms.

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