TPG in superior talks to purchase Crown Fort fiber unit for $8 billion, supply says

By Milana Vinn and Rishi Kant

(Reuters) – Buyout agency TPG is in superior talks to purchase tower operator Crown Fort’s fiber unit for about $8 billion, a supply conversant in the matter stated.

Shares of Houston, Texas-based Crown Fort rose 2.1% after the bell.

A deal for the fiber and wi-fi items may very well be introduced inside weeks, the supply stated.

Nevertheless, the supply added that whereas no ultimate determination has been made, discussions may break down or one other purchaser may emerge.

The event was first reported by Bloomberg Information.

TPG, alongside fiber community proprietor Zayo Group, was vying for Crown Fort’s fiber and wi-fi property, Reuters reported in October, citing individuals conversant in the matter.

If the negotiations are profitable, the deal would come at a time of intensifying mergers within the fiber sector.

With the fast progress of fiber broadband driving enterprise for infrastructure suppliers, corporations comparable to Crown Fort are seen as engaging acquisition targets.

Spokespeople for TPG and Crown Fort declined to remark.

The event comes at a time when Crown Fort is exploring choices for its fiber property, having reached an settlement with activist investor Elliott Funding Administration over the reshuffle of its board.

Crown Fort co-founder Ted Miller advised Reuters in February that the corporate may increase as much as $15 billion from promoting its fiber property if it let him and his companions be part of its board. .

(Reporting by Rishi Kant in Bengaluru and Milana Vinn in New York; Modifying by Shreya Biswas)