SYDNEY, AAP – TPG Telecom’s David Teoh has resigned from one of the major forces in the Australian telecommunications industry, having steered a merger between the company he founded and Vodafone last year.
The telco on Friday said Mr Teoh had resigned as chairman and a director. The resignation is effective immediately.
Mr Teoh’s son Shane also resigned from the board.
In a statement, the elder Teoh outlined the growth of the internet service provider he and wife Vicky founded more than 30 years ago.
He said the merger last year with Vodafone had come together better and faster than expected.
“Now is the right time for me to step aside and pursue other interests,” he said.
Canning Fok, from the Vodafone Hutchison side of the merger, will take over as chairman.
Mr Teoh remains the top shareholder and has a 13 per cent stake.
Telecommunications analyst Paul Budde said Mr Teoh was remarkable for having founded and built up TPG.
“The amazing thing about TPG is they were one of few to build a company to the size it is now,” he said.
The merged entity has more than five million mobile customers and two million fixed broadband customers.
Mr Budde said TPG was the only genuine competitor to Optus and Telstra.
Investors were concerned by Mr Teo’s exit and TPG shares fell to a record low of $6.23.
The merged entity listed in June last year.
Shares were lower by 7.28 per cent to $6.37 at 1415 AEDT.