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Singtel is offering a 60 per cent to 70 per cent stake in Australian Tower Network, in a selldown known as Project Lion and run by Bank of America.
Australian Tower Network is the new holding company that would own the group’s 2132 mobile towers, which would be leased back to Singtel owner telco Optus and other carriers.
Singtel’s bankers earlier told potential buyers that Australian Tower Network was making about $100 million a year in earnings before interest, tax, depreciation and amortisation.
The stake is expected to be worth $1.5 billion to $2 billion, based on similar deals in Australia and offshore.
BoA collected indicative bids 2½ weeks ago, in what was the first part of a two stage auction. Singtel reviewed the bids before deciding on the shortlist.
The auction comes amid strong investor interest in Australian telelcommunications infrastructurem, as shown by Telstra’s deal to a 49 per cent stake in its towers portfolio to Australia’s Future Fund, Commonwealth Superannuation Corporation and Sunsuper, in a consortium managed by Morrison & Co for $2.8 billion.
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