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BRIEF-TPG Telecom acquires 700MHz spectrum in Australia
April 11, 2017 / 11:38 PM / 8 months ago

BRIEF-TPG Telecom acquires 700MHz spectrum in Australia

April 12 (Reuters) - Tpg Telecom Ltd

* 700mhz spectrum acquisition and entitlement offer

* tpg telecom acquires 700mhz spectrum in australia

* launches $400 million entitlement offer

* successfully bid for 2x10mhz of mobile spectrum in 700mhz band at recent auction conducted by Australian Communications and Media Authority

* Tpg will build a mobile network in australia using current advanced technology for $1.9 billion

* entitlement offer proceeds will be to pay down debt, which will then be drawn as needed

* will fund capital expenditure for rollout & spectrum payments over next 3 years through combination of operating cashflows & debt facilities

* 700Mhz spectrum licence commences from 1 april 2018 and expires on 31 december 2029

* “it is expected that network rollout will require capital expenditure of $600 million over initial three years starting in 2018 to cover 80% of population.”

* Tpg estimates that its mobile network would be ebitda break-even with 500k subscribers

* reaffirm guidance provided in march 2017 for underlying ebitda for group for full year fy17 to be in range of $820-830 million.

* Immediate use of entitlement offer proceeds will be to pay down debt

* Intends to implement a DRP commencing for fy17 final dividend. Which is expected to remain in place for next two to three years

* “launched a 1 for 11.13 accelerated non-renounceable pro-rata entitlement offer” Source text for Eikon: Further company coverage:

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