TPG is a sizeable holding for us. As such, we note the investor day, today, with great interest.
An excellent slide from TPG, and one of the rare times a strategy day actually sheds some decent light-analysis-implication on a market structure, down to the level of competitive response.
The slide details the enormous bank made by TLS in the monetisation of the existing copper infrastructure (the $11bn total NPV deal struck many years back now with Telstra), and how that essentially underwrote an aggressive pricing strategy.
Those payments are finished now, and mobile operators need to make a good return. Hence, “rationality returns”, is the point TPG are making.
TPG also have a good “strategic outcomes to date slide”, showcasing the various accomplishments.
Of interest to us, merger synergies delivered, and additional mobile subscribers.
Overall, we remain happy holders.
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