The TPG Telecom Ltd (ASX: TPG) share price wasn't in a trading halt for long.
The telco's shares returned to trade after being halted for less than two hours following the release of a response to media speculation.
And they certainly returned with a bang. TPG's shares were up as much as 14% before closing the day up 11.5% to $5.60.
What's going on with the TPG share price?
Investors were bidding the TPG share price higher following reports that the company was close to agreeing on a deal for its fibre assets.
As we covered here, there was speculation that TPG and Macquarie Group Ltd (ASX: MQG) were in talks over a "multi-billion-dollar sale and leaseback."
TPG has responded to the report this afternoon. It confirmed that talks are taking place with Macquarie-backed Vocus following a strategic review. It said:
As part of that process, Vocus Group made an indicative, highly conditional, non-binding offer to acquire certain of TPG's Enterprise, Government and Wholesale assets and associated fixed infrastructure assets, including Vision Network, for approximately $6.3 billion.
However, talks are still ongoing and Vocus has just over a month to complete its due diligence. It adds:
The indicative offer is conditional upon a number of matters, including due diligence, debt financing, finalisation of transaction documentation, and approvals of the respective Boards of TPG and Vocus Group. Following an assessment of that offer by the Board of TPG, it granted Vocus Group a period of exclusive due diligence, currently set to expire on 6 September 2023.
Management has also warned that there's no guarantee that the talks will result in a deal being agreed. It concludes:
Discussions between the parties remain incomplete and transaction terms are subject to ongoing negotiation. Securityholders should be aware that the Board of TPG has not made any decision to accept any offer, and there is no certainty an agreed transaction will eventuate. If a transaction is able to be agreed, it would also remain subject to a range of conditions, including relevant regulatory approvals.
