The TPG Telecom Ltd (ASX: TPM) share price is pushing higher on Wednesday after shareholders voted in favour of its merger with Vodafone Australia.
At the time of writing the telecommunications company’s shares are up 0.5% to $9.03.
What happened at its scheme meeting?
This morning TPG Telecom held its scheme meeting and shareholders were given the opportunity to vote on a few matters.
The first was of course the proposed merger with Vodafone Australia. That merger will see TPG shareholders own 49.9% of the merged company, with the balance held by Vodafone shareholders.
Management notes that the merger brings together two highly complementary businesses to create a leading integrated, full-service telecommunications company with a comprehensive portfolio of fixed and mobile products for consumers, SMEs, and enterprises.
It will also combine their network infrastructure and enable the merged company to deliver better services and more competitive value propositions. It expects this to make it a more formidable competitor to the likes of Telstra Corporation Ltd (ASX: TLS) and Optus.
According to the AFR, shareholders voted overwhelmingly in favour of the merger, with 99.68% of proxies giving the merger their blessing.
What else were TPG shareholders voting on?
In addition to the merger, TPG shareholders were voting on a special dividend, which is expected to be in the region of 49 cents to 52 cents per share.
Unsurprisingly, shareholders have voted in favour of this dividend. They have also done the same for its plan to spin off its Singapore business, which will then be listed on the Australian share market as Tuas Limited.
This was the final true hurdle for TPG and Vodafone Australia to overcome.
The scheme will now go back to the courts to be signed off and approved on Friday, before finally going to ASIC. This puts the companies on track to complete their merger on 13 July.
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