The $950m sale price of 100% of TPG Telecom’s mobile tower and rooftop infrastructure assets is consistent with Credit Suisse’s prior forecast. Proceeds will be deployed to pay down existing debt facilities.
The broker increases its target price to $5.95 from $5.80 to reflect value accretion from the transaction, though maintains a Neutral rating on valuation.
Target price is $5.95.Current Price is $5.72. Difference: $0.23 – (brackets indicate current price is over target). If TPG meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).