Private equity giant TPG Capital, local mobile player 2degrees and utility-provider-turned-ISP Trustpower are all in the running for Vocus New Zealand as the asset auction enters its second round, the Australian Financial Review reports. However, it is understood that TPG’s interest is conditional, and it will only make a binding bid if it can partner up with an existing industry player on the right terms. As such, the AFR notes that TPG has held talks with Trilogy International Partners, the majority owner of 2degrees, although there is no formal partnership at this stage.
Vocus is understood to be seeking AUD500 million (USD390.4 million) to AUD600 million for the unit, which it has described as ‘a highly profitable standalone business’, generating NZD342 million (USD249.1 million) in the year ended 30 June 2017. Goldman Sachs and Credit Suisse are running the auction.