TPG Telecom Limited (ASX: TPG) shares are in the green today amid a strategic update.
The telecommunication company's shares are up 1.77% at the time of writing, currently trading at $4.895 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.69% today.
So what did TPG announce to the market today?
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Bank of America to assist with strategic review
TPG has recruited Bank of America to assist with a strategic review of the company's Vision Network business unit.
The company said its board wants to unlock value for TPG Telecom shareholders and enable Vision Network to "exploit its full potential".
The Australian Financial Review reported Bank of America may help TPG sell its Vision Network business and will likely speak to prospective investors.
Vision Network provides fixed broadband to about 135,000 subscribers. The business is expected to generate more than $100 million of revenue in the 2023 financial year.
Commenting on today's news, TPG CEO and managing director Inaki Berroeta said:
Vision Network's operations are best-in-class and, following completion of the last phase of functional separation from our retail operations earlier this month, the business has compelling opportunities to fulfil its potential to become a leading wholesale residential broadband platform for multiple retail service providers.
TPG believes Vision Network has the potential to provide super-fast broadband connectivity to new building developments.
TPG said it will provide more updates to the market "in due course" and "as appropriate".
Share price snapshot
TPG shares have shed almost 28% in the past 12 months, while they are down 17% year to date.
In comparison, the S&P/ASX 200 (ASX: XJO) has lost nearly 7% in the past year.
TPG has a market capitalisation of about $9 billion based on the current share price.
