Blackstone lines up for AirTrunk as AussieSuper hires bank for Origin Energy negotiations

AirTrunk is a data centre operator.

When AirTrunk’s $5bn-plus sale process gets under way, one of the groups said to be lining up with enthusiasm to buy the data centre operator is New York-based private equity firm Blackstone.

Blackstone has purchased data centres in Australia before, and it meets the criteria for one of its key areas of investment.

In recent years, the private equity firm has told the market it positions its investor capital towards fast-growing areas of the economy including renewable energy, life sciences and tech-enabled businesses.

AirTrunk is owned by Macquarie Asset Management, PSP and the owner and founder ex-Next DC executive Robin Khuda, and their dilemma is that if they hold the business too long, while it may increase in value the buyer universe could become far smaller.

While Blackstone will be a keen participant in any deal, it is expected to be among a number initially lining up for an acquisition.

Other likely inquirers early in the contest are likely to be sovereign wealth funds or investors such as Digital Bridge or Kohlberg Kravis Roberts.

AirTrunk is planning a dual track process, where it may also consider a float, hiring Goldman Sachs to work on a deal with Macquarie Capital.

It is considered the best-in-class hyperscale data centre platforms for large cloud, content and enterprise customers across the Asia-Pacific, launching its first hyperscale data centre in western Sydney. Most think that if it makes it to the boards, it would have a market value of between $5bn and $7bn.

Before it was purchased by Macquarie and its backers about four years ago, it was estimated to be on the market for about $3bn as it continued on its growth path.

It operates in Japan, Malaysia, Hong Kong, Australia and Singapore.

The deal is expected to be one of the largest in the market, with the other under the spotlight being Brookfield and EIG’s planned purchase of the $16bn listed energy retailer and producer Origin Energy.

Sources have told this column the pair are planning to lift their bid. The question is whether it will be enough to satisfy 14 per cent shareholder AustralianSuper, which is understood to be holding out for more money.

No doubt, discussions between the suitors and Origin’s shareholders are taking place.

Sources say AustralianSuper has hired a boutique investment bank to assist with its negotiations over the deal.

Two possibilities are Flagstaff Partners or Lazard, given both are based in Melbourne, where the nation’s largest super fund is based.

Meanwhile, it is understood that the sale process for a stake in Perth Airport being run by UBS has finally taken flight. On offer is a 9.14 per cent interest in a deal that could be worth up to $700m.

The sellers are The Infrastructure Fund, which is managed by Macquarie and owns 7.19 per cent of the airport, and Australian Retirement Trust, which has 1.95 per cent.

Perth Airport is the fourth-busiest airport in Australia for passenger traffic, and operates around the clock.