TPG knocks down 2degrees talk

Reports of 2degrees being on the brink of a sale have surfaced in the Australian media today.

Australia 's TPG Telecom has moved to knock down speculation today that it is about take over New Zealand's third biggest telco, 2degrees.

"TPG advises that it is not currently in discussions with 2degrees or its representatives," TPG said in a short statement to the ASX.

Australian media earlier speculated that TPG was close to buying 2degrees for up to $900 million.

A spokeswoman for 2degrees said the company had no comment to offer on the reports.
Reports carried in The Australian and the Australian Financial Review said a TPG-2degrees deal was imminent.

ASX-listed TPG's shares doubled in price in the last five years to around A$12.50.
US-based venture capital company Trilogy International Partners, owns about 61.6 per cent of 2degrees.

TPG provides a range of communication services to residential users, small and medium enterprises, government, large corporate enterprises and wholesale customers.
2degrees has a significant network in New Zealand and has taken some market share off the two big companies - Spark and Vodafone - in the residential space.

It's not the first time speculation of a takeover of 2degrees has arisen.

At the company's results briefing mid-year, chief executive Stewart Sheriff headed off any questions on the issue.

"You can read anything you want about [various companies] going to buy us, we won't be commenting on that - that is something the shareholders deal with," he said then.
Australian-listed telcos TPG, Vocus and M2 have been suggested as potential suitors for 2degrees.

2degrees reported a narrower loss for the 2015 year in a period that saw it expand to a full-service provider after it acquired Snap internet for an undisclosed sum in March last year, and invested heavily in network expansion.

The company posted a $33.1 million loss for the year, 6 per cent better than the previous year, and earnings before interest, tax, depreciation and amortisation of $78.5 million, up from $54 million the year before. Revenue lifted 43.1 per cent to $569.1 million.

Sheriff said at the time that 2015 had been focused on growing revenue market share, capability and building a platform for the company to grow from.