Vocus makes another tilt at TPG's fiber assets

　　TPG Telecom has confirmed it is once again in talks with the Vocus Group about the sale of most of its fiber portfolio.

　　Fiber specialist Vocus last year offered 6.3 billion Australian dollars (US$4.1 billion) for the bulk of TPG's fiber transmission and access assets, but the parties called off the deal in November after failing to agree on price.

　　TPG said in an ASX announcement Monday that the company remained committed to "assessing value-optimizing alternatives for its fixed infrastructure assets."

　　"Vocus Group and TPG have engaged in non-exclusive discussions as part of that strategic review process," it said.

　　Privately held Vocus is Australia's fourth-biggest telco and operates an extensive long-haul fiber network to service its enterprise customers.

　　Vocus, which is owned by Macquarie Infrastructure and Real Assets Assets (MIRA) and pension fund Aware Super, did not comment. The company last year made a non-binding offer to acquire some of TPG's enterprise and other fiber assets, including broadband wholesaler Vision Network.

　　TPG's enterprise and government unit last year recorded revenue of A$1.12 billion, up 12%, accounting for 21% of total revenue of A$5.53 billion.

　　'Strategic review'

　　Vision Network is Australia's biggest residential wholesale network after NBN, passing 410,000 premises and achieving A$108 million in sales. TPG appointed financial advisers last October to conduct a strategic review of the business.

　　While neither company offered an explanation as to why talks had restarted, the news seems to confirm that nothing has changed in the nine months since they called the deal off. TPG's fiber assets remain under strategic review as it struggles to compete in a saturated market against two bigger rivals. Its profit dropped 46% last year and its stock has fallen 48% in the past five years.

　　For its part Vocus, a fiber specialist with its two cashed-up owners, is looking to grow quickly through M&A, and TPG's assets are the most attractive available.

　　TPG shares advanced 3.5% in early trading but later dropped under the weight of the heavy stock sell-off, closing 2% lower.