• Vocus Transaction generated net cash proceeds of approximately $4.7 billion
• TPG to return up to $3 billion to all shareholders via a pro rata Capital Reduction of up to $1.61 per share
• Reinvestment Plan of up to $688 million intended to provide minority shareholders with the option to re-invest Capital Reduction proceeds

TPG Telecom Limited (ASX: TPG) has announced plans to return cash to shareholders, repay debt, and increase minority ownership of the company. This follows the financial close of the sale of TPG's fibre network infrastructure assets and Enterprise, Government and Wholesale fixed business to Vocus Group Limited for an enterprise value of $5.25 billion, generating net cash proceeds of approximately $4.7 billion. TPG plans to execute a cash distribution and pro rata Capital Reduction of up to $3 billion, equivalent to up to $1.61 per share. The company will also offer minority shareholders the opportunity to re-invest their Capital Reduction proceeds in new fully paid ordinary shares through a Reinvestment Plan, which is designed to offset the reduction in TPG's free-float market capitalization, increase minority shareholder ownership, improve trading liquidity, and support TPG's ASX200 index weighting. Proceeds from the Reinvestment Plan will be used to pay down debt. TPG plans to reduce its financial leverage through the repayment of bank borrowings of up to $2.4 billion, comprising approximately $1.7 billion of Vocus Transaction proceeds and a targeted $688 million of Reinvestment Plan proceeds. TPG expects to pay a dividend for FY25 of 18 cents per share and intends to increase dividends in future years subject to sustainable growth in profit and cash flow.

TPG expects to have drawn bank borrowings of approximately $1.7 billion, approximately 1.3 times FY25 Pro Forma EBITDA on a pre-AASB16 basis, following the capital management initiatives announced.