TPG Telecom enters into binding agreement to sell 100% of its passive mobile tower and rooftop infrastructure (tower asset) to OMERS Infrastructure Management (OMERS) for $950 million.

As a result of the deal, TPG will bank net proceeds of approximately AUD $890 million in, which it intends to use to repay its existing bank debts.

This sum measures TPG’s tower assets at 32.1x enterprise value / EBITDA.

TPG Telecom CEO and managing director Iñaki Berroeta said, “We are delighted to have concluded the strategic review of these assets with such a strong outcome for TPG Telecom shareholders.”

Upon completion, OMERS will board approximately 1,237 facilities, including 428 towers and 809 roofs, at key metropolitan locations and as part of a committed construction program with 252 new facilities.

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

This sale of the towers follows the Multi-Operator Backbone Agreement (MOCN) announced by TPG in February this year to allow for regional network sharing with Telstra (subject to regulatory approval).

The transaction includes a master services agreement with a 20-year term and an option for TPG Telecom to extend.

The telco plans to provide further details at its FY22 half-year results on 19 August 2022