Paving the way for the completion of a deal first announced back in August 2018, shareholders of Australian communications provider TPG Telecom have approved the proposed merger of that company with Vodafone Hutchison Australia (VHA). According to ZDNet, more than 99% of TPG shareholders present in person or via proxy at a remote shareholder meeting voted in favour of the resolution, which equated to 99.99% of the votes; a 75% threshold was needed to pass the resolution.
With this shareholder approval now secured, the final stages of the merger process are expected to get underway, and the first of those steps is the obtaining of a final approval for the tie-up from the NSW Supreme Court, where a hearing has been set for 26 June. Subsequent to this, VHA is then expected to be renamed as TPG Telecom Limited as the merger scheme comes into effect at the start of next week (29 June), while on that same day TPG’s shares – which are currently listed under the TPM ticker symbol – will be delisted from the Australian Securities Exchange (ASX). The following day, the former Vodafone entity will then appear on the ASX under the TPG symbol, with deferred settlements. Finally, the new TPG will then begin regular trading on the stock exchange on 14 July. Upon completion of the merger process, VHA’s shareholders will hold 50.1% of the enlarged company, while TPG’s shareholder will hold the remaining 49.9%.
Commenting on the latest development, VHA’s chief executive Inaki Berroeta was cited as saying: ‘Today is a significant milestone in the merger process and subject to final court approval, we will be bringing VHA and TPG together in two and a half weeks … The merger will create a leading full-service telecommunications provider which will be well-positioned to drive stronger competition in the market and deliver benefits to customers and shareholders.’