TPG, Vodafone confirm reports of possible merger

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TPG, Vodafone confirm reports of possible merger

TPG and Vodafone have confirmed they are in “exploratory discussions” for a possible merger.

The Australian reported earlier today that the telcos had enlisted UBS and Macquarie Capital to advise on the potential tie-up. The report said that discussions between the two started as early as 2015.

TPG and Vodafone said the deal would be a potential “merger of equals” but neither gave any guarantees if the transaction would go through.

“The TPG board notes that there is no certainty that any transaction will eventuate or what the terms of the transaction will be,” the telco said in a statement.

“TPG makes this statement, and will continue to keep the market informed in accordance with its continuous disclosure obligations.”

For the first half of 2018, Vodafone posted a $92.3 million loss despite a boost in revenue to $1.77 billion and a 5.2 percent bump in subscribers to 5.98 million in the six months leading to 30 June 2018.

TPG's share price rallied from $5.71 on 16 August to $6.29 yesterday. As of 4:30 pm today, the share price has since jumped to $7.65.

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