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Australia's TPG Telecom enters talks to buy local Vodafone-Hutchison venture

By Reuters
Australia's TPG Telecom enters talks to buy local Vodafone-Hutchison venture
A woman holds her phone as she walks past an advertisement for Australia's TPG Telecom Ltd in central Sydney, Australia, April 12, 2017. REUTERS/Steven Saphore   -   Copyright  Steven Saphore(Reuters)
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(Reuters) – Australia’s TPG Telecom Ltd <TPM.AX> has entered initial talks with Vodafone Group PLC’s <VOD.L> local venture to explore a potential takeover of the latter, the two companies said in separate statements on Wednesday.

The venture, Vodafone Hutchison Australia Pty Ltd, is jointly owned by Vodafone and Hutchison Telecommunications (Australia) <HTA.AX>, a unit of CK Hutchison Holdings <0001.HK>.

If the deal goes through, it would represent TPG’s latest effort to fend off competition from rivals such as Singapore Telecommunications’ <STEL.SI> Optus and local major Telstra Corp <TLS.AX>.

In 2015, TPG announced a deal to buy domestic rival internet services provider iiNet <IIN.AX> for A$1.4 billion ($1.02 billion) to boost its broadband business and expand its presence across Australia.

($1 = 1.3669 Australian dollars)

(Reporting by Aaron Saldanha in Bengaluru; Editing by Chang-Ran Kim)

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