TPG Telecom has signed a binding Share Purchase Agreement to sell its non-mobile fibre infrastructure and fixed business assets to Vocus Group for A$5.25 billion.

The transaction includes TPG's fibre network, its Enterprise, Government, and Wholesale fixed business, as well as a submarine cable from Sydney to Guam.

TPG CEO Inaki Berroeta emphasized that this deal simplifies their operating model and unlocks significant value from fixed infrastructure assets.

Upon completion of the sale, TPG is expected to receive net cash proceeds between A$4.65 billion and A$4.75 billion, which will be directed towards capital management and investments.

The deal is anticipated to close in the second half of 2025, pending necessary regulatory approvals.

This acquisition will enable Vocus to control over 50,000 kilometers of fibre, connecting around 20,000 buildings and 15,000 kilometers of international submarine cables.

Vocus interim CEO Jarrod Nink described the agreement as transformative for the company, enhancing competition within the Australian telecommunications sector.

The merger of TPG's assets with Vocus's existing network is expected to create significant opportunities for customer service improvements.

Despite the sale, TPG will retain its mobile radio network, consumer and enterprise mobile business, and fixed retail business, including fixed wireless services.

As part of the agreement, Vocus will provide network services back to TPG for A$130 million annually for at least 15 years.

Following the announcement of the sale, TPG's shares experienced a decline, closing at A$4.88.

The agreement follows renewed discussions between TPG and Vocus about the sale, which had been paused nearly a year prior.