Australia’s TPG Telecom to return $1.9 bln to shareholders from Vocus sale
Investing.com-- TPG Telecom Ltd (ASX:TPG) said on Tuesday it plans to return up to A$3 billion ($1.94 billion) to its shareholders from the proceeds of the sale of its fibre and wholesale business to Vocus Group.
TPG said it will return A$3 billion through a pro-rata capital reduction of up to A$1.61 per share, after it clocked net cash proceeds of about A$4.7 billion from the Vocus deal.
The company also announced a reinvestment plan of up to A$688 million, and that it will repay bank borrowings of up to A$2.4 billion to reduce its financial leverage.
TPG said it was targeting a 2025 dividend of 18 cents per share, and that it planned to increase its dividend payouts in the coming years.
The company’s announcement comes just days after it closed its sale to Vocus.
TPG also forecast lower pro-forma earnings before interest, tax, depreciation and amortization for 2025, between A$1.605 billion and A$1.655 billion and lower than an earlier range of A$1.95 billion to A$2.03 billion.
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