News: TPM TPG Telecom acquires 700MHz spectrum in Australia

April 12 (Reuters) - Tpg Telecom Ltd (TPM)

• 700mhz spectrum acquisition and entitlement offer
• tpg telecom acquires 700mhz spectrum in australia
• launches $400 million entitlement offer
• successfully bid for 2x10mhz of mobile spectrum in 700mhz band at recent auction conducted by Australian Communications and Media Authority
• Tpg will build a mobile network in australia using current advanced technology for $1.9 billion
• entitlement offer proceeds will be to pay down debt, which will then be drawn as needed
• will fund capital expenditure for rollout & spectrum payments over next 3 years through combination of operating cashflows & debt facilities
• 700Mhz spectrum licence commences from 1 april 2018 and expires on 31 december 2029
• "it is expected that network rollout will require capital expenditure of $600 million over initial three years starting in 2018 to cover 80% of population."
• Tpg estimates that its mobile network would be ebitda break-even with 500k subscribers
• reaffirm guidance provided in march 2017 for underlying ebitda for group for full year fy17 to be in range of $820-830 million.
• Immediate use of entitlement offer proceeds will be to pay down debt
• Intends to implement a DRP commencing for fy17 final dividend. Which is expected to remain in place for next two to three years
• "launched a 1 for 11.13 accelerated non-renounceable pro-rata entitlement offer"