TPG dangles dividend for merger vote

TPG shareholders will receive a special dividend of 49 to 52 cents per share should the internet service provider’s merger with Vodafone go 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.

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.

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.

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