Preparing to take on competitors Telstra and Optus, two companies have proposed a merger that may change the landscape of Australian telecommunications.
The proposed merger openly admits this is a move to “compete more effectively with Telstra and Optus”, though it also cites a desire to “invest and drive innovation, service and product improvement to benefit Australian telecommunications customers”.
VHA, which runs the Australian branch of Vodafone, released a statement assuring customers that “it’s business as usual”. Chief Commercial Officer Ben McIntosh says, “We’re very excited about the future, but for the moment, nothing changes for our customers. They can continue to enjoy all the things they love about us…Customers can continue to use our services, upgrade or change plans, or join us as a new customer with confidence.”
The companies estimate that their combined worth will be about $15 billion, with revenue of $6 billion and EBITDA of $1.8 billion.
Although TPG shareholders will own 49.9 percent (and VHA shareholders 50.1 percent), the new company will be called TPG. Governance will split across the merged teams, with the current CEOs of VHA and TPG staying on in leadership roles and the Board comprising representatives from both companies, plus two new, independent directors.
Full details of the proposed merger can be found here on the Australian Securities Exchange.