News: TPG UPDATE 1-Australia's TPG Telecom to sell mobile tower assets for $670 mln

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May 9 (Reuters) - Australian broadband services provider TPG Telecom Ltd (TPG) said on Monday it will sell its passive mobile tower and rooftop infrastructure assets to Canada's OMERS Infrastructure Management Inc for A$950 million ($670 million).

The sale of the assets, which include more than 1,200 sites and represent about 21% of TPG's mobile network footprint, will deliver net cash proceeds of A$890 million, which will be used to repay existing bank debt, it said.

"The transaction represents competitive long-term financing, which will reduce our total financial leverage and deliver lower borrowing costs," TPG Chief Executive Iñaki Berroeta said.

The deal is the latest in a flurry of telecom asset sales in Australia, where firms are increasingly reviewing options for their aging infrastructure as they try to capitalise on growth in 5G.

Toronto-based OMERS had C$32 billion ($24.78 billion) in assets under management and investments in 12 countries at the end of last year, according to its website. It did not immediately respond to a request for more details on the deal.

TPG said it will book a gain of about A$350 million to A$400 million after tax from the deal.

The deal is subject to approval from Australia's Foreign Investment Review Board and is expected to close in the third quarter of fiscal 2022, TPG added. ($1 = 1.4178 Australian dollars) ($1 = 1.2915 Canadian dollars)