TPG Telecom Needs Singapore Approval Before Mobile Unit Spinoff
(Bloomberg) -- TPG Telecom Ltd. must obtain regulatory approval before splitting its Singapore mobile business from the rest of the company, the Info-communications Media Development Authority of Singapore said.
The regulator has a priority to ensure TPG Singapore “will fully meet all its licence and regulatory obligations” after it announced on Thursday the $8 billion merger with Vodafone Hutchison Australia Pty.’s mobile business. The deal includes a spinoff of its Singapore unit. The Australian carrier won a bid to hold Singapore’s fourth mobile license in 2016 and is expected to roll out services this year.
IMDA wants to ensure “there is no adverse impact to Singapore’s competitive industry landscape or the public interest,” a spokesperson said in an email.
TPG shares rose 18 percent after the deal announcement, while Singapore Telecommunications Ltd. climbed 2.2 percent and StarHub Ltd. gained 1.9 percent as of 3:12 p.m. in Singapore. M1 Ltd. was unchanged.
TPG said it has “commenced engagement” with the Singapore regulator with regards to the separation and that a spinoff has “always been envisaged.” The merged company will enter a “commercial and transitional services arrangement” with TPG Singapore after the separation.
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