TPG Telecom Ltd (ASX: TPG) shares are falling this morning following news that company chair and founder David Teoh has resigned, effective immediately. In the opening minutes of trade, the TPG share price is trading 6.11% lower at $6.45. In contrast, the S&P/ASX 200 Index (ASX: XJO) has opened slightly higher.
In a statement to the ASX, Mr Teoh confirmed he would be leaving the company after more than 30 years.
Let's take a closer look at the company's announcement.
David Teoh leaves, major board reshuffles
The TPG share price is on the slide today following this morning's news. In a letter to shareholders, Mr Teoh outlined his reasons for leaving. The billionaire said the company was growing faster than expected and "now would be the right time…to step aside and pursue other interests."
"When [wife] Vicky and I started our business more than 30 years ago, we had little more than ambition. We were lucky. Australia provided us with an environment in which, with hard work and perseverance, we were able to build a company that now provides services to millions of Australians and has a remarkable suite of assets" Mr Teoh added.
TPG merged with Vodafone last year after winning a protracted legal battle against the Australian Competition and Consumer Commission (ACCC).
Along with Mr Teoh, his son Shane – who was recently convicted of assault – will also be leaving the board. Mr Teoh's other son, Jack, will replace him on the board. Company secretary Antony Moffatt will replace Shane. Board member Canning Fok will become the new chair.
Mr Teoh says Mr Fok is "one of the most capable business leaders in the world…"
Management commentary
TPG CEO Iñaki Berroeta said of Mr Fok's appointment:
Canning brings decades of global executive business and telecommunications experience to the role of Chair, and I believe he will be a strong leader of the board,
With his involvement in the business dating back more than 20 years and his key role in the merger, Canning knows the company well.
I look forward to working with Canning as we lead TPG Telecom into the future.
Mr Fok gave the following words about his appointment.
Very few companies have an opportunity like TPG Telecom to challenge and shape an industry which is so important to the everyday lives of Australians. It's an honour to be appointed as Chairman at such an exciting point in the company's history. I admire the work Iñaki and the Executive Team have done to set the company up for the future and it's clear there are exciting times ahead.
On David Teoh's tenure, Mr Berroeta said
While David will remain one of the company's major shareholders, I would like to thank him for the support he showed me, and I wish him well for the future.
Mr Fok also gave words of gratitude to Mr Teoh
David's legacy is incomparable. He has driven significant change in the Australian market and has carved out a position which TPG Telecom will build on. We are in David's debt for all he has done.
TPG share price snapshot
The TPG share price is down nearly 28% from this time last year. It is one of a few companies to have not recovered since last year's COVID-induced market meltdown. Just in the last 6 months, the TPG share price is down nearly 13%.
TPG has a market capitalisation of $12.9 billion.
