Finance TPG offers special dividend for Vodafone merger vote
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TPG offers special dividend for Vodafone merger vote

tpg-vodafone
TPG shareholders will receive a special dividend of 49 to 52 cents per share should they vote for a merger with Vodafone on June 24. Photo: Simon Rankin
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TPG is dangling the temptation of a special dividend of 49 to 52 cents per share if the internet service provider’s merger with Vodafone goes ahead.

TPG shareholders will vote on the proposed merger, which would create a stronger rival for Telstra and Optus, at an extraordinary general meeting on June 24.

The two telcos first announced their intent to merge in 2018.

Industry observers say TPG is missing a proper mobile arm, while Vodafone is missing a proper fixed-line footprint. A merger would solve both issues and provide greater competition for Telstra and Optus.

The $15 billion 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 ACCC was accused of hurting rather than helping competition by blocking the merger. The competition regulator argued in May that the move would lessen competition.

Under the agreement, Vodafone Hutchison Australia will buy all shares in TPG and will be listed on the ASX as TPG Telecom Limited.

Vodafone Hutchison Australia shareholders will own 50.1 per cent of the merged group, while TPG shareholders will own 49.9 per cent.

-with AAP