TPG shareholders have voted in favour of the internet service provider’s merger with Vodafone Australia at its online extraordinary general meeting .
The $15 billion merged entity is expected to create a stronger rival for Telstra and Optus, as the two telco were the third largest providers in Australia of their respective internet and mobile services.
TPG executive chairman David Teoh said the fixed line and mobile phone services of the two providers are complementary and a merged entity would better serve customers.
“The merger brings together two highly complementary businesses to create a leading integrated, full-service telecommunications company,” he said.
“The merged company will deliver better services and more competitive value propositions to Australian customers and become a more formidable competitor in the market.”
A merged company would be able to more quickly roll out a 5G mobile network to provide faster data transfer.
TPG shareholders will receive a special dividend in the range of 49 to 52 cents per share before the merger, and will own 49.9 per cent of the merged group, while Vodafone Hutchison Australia shareholders will own 50.1 per cent.
Under the agreement, Vodafone Hutchison Australia will buy all shares in TPG and will be listed on the ASX as TPG Telecom Limited.
The merger has received the green light from the Foreign Investment Review Board, as well as the Federal Court, after competition watchdog ACCC initially opposed the combination.
The merger is now waiting for approval from the NSW Supreme Court, with a hearing set for 26 June 2020.
At 1456 AEST, shares in Hutchison Telecommunications Australia, which owns Vodafone Australia, were 3.03 per cent higher at 17 cents, whle shares in TPG were up 0.78 per cent to $9.05.