TPG snaps up Telecom NZ's Australian assets for $450m TELECOM New Zealand has sold its Australian subsidiary to TPG Telecom for $450 million. TPG, which is headed by the acquisitive David Teoh, beat out iiNet and the Canada's Ontario Teachers Pension Plan (OTPP) for the asset. The acquisition is a personal win for Mr Teoh, who has missed out on two major deals in the past three years. This year, TPG failed in its attempt to buy Leighton Holdings' extensive portfolio of telecommunications businesses, including Nextgen Networks, when OTPP entered an agreement to purchase 70 per cent of the assets for about $620m. Investors have jumped on TPG's shares since the deal was announced this morning, sending the stock's value up by 15 per cent to as much as $4.75 in early trade. That surge has slowed in afternoon trade with shares in TPG trading at $4.61 at 1pm. That 11.65 per cent gain has added close to $470m to TPG's market cap which is now at $3.74bn. In 2010 TPG was pipped at the post in the race for AAPT's consumer arm when iiNet emerged as a surprise late bidder to snare it for $60m. Sources said Mr Teoh was eager not to let AAPT's wholesale business slip through his fingers like the last two asset sales. This transaction represents approximately 6.4 times AAPT's current recurring annualised ebitda run-rate of approximately $70m. The transaction will complete on 28 February 2014. AAPT owns a significant fibre-optic cable network that links various cities and commercial hubs throughout Australia, including 11,000km of interstate fibre, its own data centres in major capital cities, and fibre access to 1600 premises. The AAPT asset is valuable to both TPG and iiNet as it would provide both players with interstate backhaul and broadband transit links that would help them reduce the cost of delivering internet services. AAPT CEO David Yuile said he believed AAPT was well-positioned in the Australian market as a business and wholesale telecommunications infrastructure company. We are very energised by the progress we have made and the massive turnaround AAPT has experienced after several years of hard work and tough decisions. AAPT is now ready for another chapter in its evolution and we look forward to the future," he said. Telecom said the sale proceeds will be used to repay debt.