Why did the TPG share price jump 14% today?

TPG shares have returned from a halt and surged higher.

| More on:
Woman in celebratory fist move looking at phone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Mergers & Acquisitions

Animation of man and woman shaking hands on a deal on top of gold coins.
Mergers & Acquisitions

Which ASX companies are deploying dividends to secure a $1.9 billion deal?

Dividends appear to have sealed the deal for an ASX mega-merger.

Read more »

2 workers standing in front of a wind farm giving a high five.
Energy Shares

Origin shares fall despite 'highly strategic' $300m renewable energy acquisition

Origin is taking a big step in its clean energy transition.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Consumer Staples & Discretionary Shares

Ansell shares jump 14% amid blockbuster acquisition

Ansell is making a big acquisition and it could be a big boost to its earnings.

Read more »

A male ASX investor on the street wearing a grey suit clenches his fist and yells yes after seeing on his ipad that the Paladin share price is going up again today
Technology Shares

This ASX All Ords small-cap is soaring 33% on a takeover bid

This tech stock has received a takeover offer. But is it enough?

Read more »

Health professional putting on gloves.
Mergers & Acquisitions

Ansell share price hits pause as company gloves up for $975 million acquisition

Ansell shares won't be trading for a while...

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Financial Shares

Suncorp share price hits new 52-week high amid $375m asset sale

Suncorp is offloading another asset as it reshapes its business.

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX 300 stock is jumping 9% after receiving a takeover offer

A South Korean chaebol has its eyes on this stock.

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Mergers & Acquisitions

APM share price placed on ice as $1.8 billion deal goes dud

It's all question marks and raised eyebrows for shareholders of this ASX company today.

Read more »