Embattled ASX forced to reverse $400m TPG share | Australian Markets
Embattled market operator ASX has been forced to reverse over $400 million in wrongly traded TPG Telecom shares after incorrectly tagging the telco in software program firm Infomedia’s takeover deal with non-public equity firm TPG Capital.
Infomedia, which is listed on the ASX, introduced on Wednesday it had agreed to be acquired by TPG Capital for $651 million.
This announcement was launched below Infomedia’s ticker code, IFM, and that of TPG Telecom’s, TPG. TPG Telecom is unrelated to TPG Capital, which isn’t publicly listed.
The Infomedia announcement didn’t help with the confusion both, referring to TPG Capital as “TPG” within the first occasion.
The mix-up by ASX wiped $437 million off the market capitalisation of TPG Telecom, which noticed its share price fall 4.3 per cent to $5.27 on the open earlier than getting into a pause in trading.
“This morning, the ASX made a serious error by incorrectly cross-referencing TPG Telecom’s share ticker in a price-sensitive announcement completely unrelated to us,” a TPG Telecom spokesman stated in a assertion.
“That unrelated announcement caused confusion among investors resulting in a sharp drop in our share price.
“While we welcome the ASX’s decision to cancel trades made during this window, we expect a full explanation of how the error occurred and what steps will be taken to prevent similar incidents in future.”
The ASX cancelled trades in TPG Telecom’s shares earlier than the pause. The company’s shares resumed trading at 12.26pm AEST.
Shares had been down 4.1 per cent to $5.28 simply earlier than the close. Meanwhile, shares in Infomedia surged 27 per cent to $1.68.
ASX markets and listings group govt Darren Yip blamed “inadvertent human error” for the mix-up.
“This mistake shouldn’t have happened and we are reviewing our internal processes to understand if there are additional safeguards or procedures we could implement to reduce the risk of a similar reoccurrence,” Mr Yip stated.
The ASX stated it contacted all market members affected by the cancellation prior to resuming trade on TPG Telecom shares.
The ticker code error comes a day after TPG Telecom introduced it will hand back $3 billion to buyers after the sale of infrastructure belongings.
It additionally marks the latest in a string of issues going through ASX, which is going through an inquiry into its organisational construction and board governance.
The investigation, launched by the company watchdog in June, will look at a collection of technology failures on the ASX, primarily associated to its troubled improve of the CHESS settlement system, which manages the settlement of share transactions and data shareholdings.
The Australian Securities and Investments Commission and the Reserve Bank voiced deep considerations in December 2024 when the system failed to full a settlement run.
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