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TPG takes 'strategic investment' in Amcom

As Amcom buys up Megaport's east coast fibre assets and eyes a Vocus merger, TPG has emerged as an interested player in the company.
Written by Josh Taylor, Contributor on

Australian telecommunications giant TPG has taken an almost 6 percent stake in rival Amcom amid talks with Vocus over combining the Amcom and Vocus businesses.

In October, Vocus took a 10 percent stake in Amcom and announced intentions to approach the Amcom board of directors with a proposal to combine the two businesses.

"The assets and operations of Vocus and Amcom are highly complementary, and the potential combination offers an enhanced growth platform, while creating a truly national player to capitalise on the evolving opportunities in the telecommunications sector," Vocus chief executive officer James Spenceley said at the time.

Shortly after that, Amcom announced that it would purchase Megaport's Melbourne, Sydney, and Brisbane fibre assets in a deal worth AU$15 million.

Then, on Thursday, TPG notified the Australian Securities Exchange that it had taken an almost 6 percent stake in Amcom, which the company has said is nothing more than a "strategic investment".

The company said the same of its 7 percent stake that it bought into rival iiNet in 2012. Then-CEO Michael Malone referred to TPG's stake as "a seat at the table", should there be any further talk of takeovers or mergers.

TPG has a growing fibre network off the back of its purchase of AAPT, and the company is now leveraging those assets to roll out fibre to the basement to 500,000 apartments in a number of capital cities in Australia in direct competition with the National Broadband Network.

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