A new telecoms infrastructure heavyweight has emerged in the Optus towers contest: Phoenix Tower International, backed by New York-based buyout fund Blackstone.
It is understood Florida-based Phoenix is shaping up as a serious competitor and is expected to be self-advised.
Private equity powerhouse Blackstone recapitalised the business in February last year with a $US1.4 billion equity injection.
The company, founded in 2013, has more than 12,500 cell towers and related sites across 14 markets in three continents with a focus on US dollar and euro-denominated contracts.
It also has 986km of fibre.
Led by chief executive Dagan Kasavana and executive chairman Tim Culver, the group has deployed more than $US3.5bn ($4.5 billion) of capital in the sector.
It will be interesting to see if Canadian pension fund CDPQ or AMP Capital emerge alongside the strategic bidder, as both provided financing to Phoenix this year.
Phoenix will be joined by another industry heavyweight in the race to buy a 70 per cent stake in of the $2 billion-odd portfolio of Australian telecoms towers owned by Optus.
Digital Colony, also based in Florida, is in the race, and DataRoom can confirm that the group is being advised by Goldman Sachs.
Like Phoenix International, it has exposure across the European and American markets.
Singtel decided to sell its Optus towers in Australia earlier this year and has hired Bank of America to run the sales process, as it looks to fund its rollout of 5G technology across Australia.
First round bids are due on June 17.
Australia-based telecoms tower company Stilmark, advised by RBC and Q Advisors, is believed to be interested.
It is backed by former Telstra boss David Thodey, along with its Canadian pension fund backer Omers and ATN International.
Others that will line up are former Crown Castle business Axicom, which is working with Credit Suisse and Macquarie Capital, along with Morrison & Co and the Future Fund, advised by Barrenjoey Capital.
Canadian private equity fund Brookfield is also involved, and KKR, together with Queensland Investment Corp and Canada’s Ontario Teachers’ Pension Plan, is believed to be taking advice from Citi and Gresham.
Lendlease has tapped Morgan Stanley for a possible run.
Spanish infrastructure owner Cellnex is understood to have dropped out of the running.
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