The TPG Telecom Ltd (ASX: TPM) share price is edging lower on Thursday despite providing a positive update on its proposed merger with Vodafone Hutchison Telecommunications (Aus) Ltd (ASX: HTA).
In afternoon trade the telco company’s shares are down 0.5% to $6.92.
What did TPG Telecom announce?
This morning the company’s proposed merger took a step closer to becoming a reality when a key condition precedent to the merger was satisfied.
According to the release, TPG Telecom has received the required consents from both the Committee for Foreign Investment in the United States (CFIUS) and the United States Federal Communications Commission (FCC).
These consents were necessary as they permit the proposed change of control relating to TPG Telecom’s submarine cable between Sydney and the U.S. territory of Guam.
Management advised that the company is continuing to work towards meeting the remaining regulatory conditions and is aiming to complete the merger with Vodafone Australia by the middle of 2020.
Whilst the reaction from TPG Telecom’s shares has been reasonably subdued, the news gave Hutchison Telecommunications’ shares a big boost.
In afternoon trade the Hutchison Telecommunications share price is up an impressive 13.5% to 12.5 cents.
Other M&A news.
This isn’t the only mergers and acquisition news on the ASX on Thursday.
At the time of writing the Seven West Media Ltd (ASX: SWM) share price is up 13% to 7.8 cents after the ACCC announced its decision to approve the sale of Pacific Magazines to Bauer Media.
Seven West’s managing director and CEO, James Warburton, was pleased with the news.
He commented: “We welcome today’s regulatory approval of the sale of Pacific Magazines to Bauer Media. This transaction provides $40 million in cash consideration (pre-adjustments and leave provisions). Additionally, the $6.6 million of advertising we are receiving from Bauer over three years further enhances the value of the sale, allowing the titles to continue to reach the valuable audiences SWM commands.”
Pacific Magazines is home to a large number of popular magazines including New Idea, Marie Claire, Australian Men’s Health, and InStyle.