Kohlberg Kravis Roberts and Ontario Teachers’ Pension Plan are understood to have tapped advisory firm Gresham in their efforts to buy the $2bn Australian telecoms towers portfolio from Singtel’s Optus.
Already, the consortium, which also includes the Queensland Investment Corporation, is working with investment bank Citi.
Gresham is believed to have a close relationship with Ontario Teachers.
The competition for a major stake in a portfolio of between 2000 and 2500 Australian telco towers is set to get under way, with promotional material sent to prospective buyers, but parties are yet to receive letters advising them of the process.
The understanding that the portfolio on offer generates about $100m of earnings before interest, tax, depreciation and amortisation, but the thinking is that Optus is likely to sell down a stake of about 70 per cent.
Apparently, a large group — potentially 30 parties — are expected to put forward first-round bids, but the plan from adviser Bank of America is to shortlist only a select few groups in the second stage given the workload required for a vast number of proposals.
The Temasek-backed Singtel is looking to sell down its Optus towers to help fund the rollout of its 5G network. It comes as Telstra prepares to launch a sale of its $1bn-plus tower portfolio through Macquarie Capital around August, and telcos across the Tasman, Vodafone and Spark, are also considering selling towers.
The KKR group is going head to head with Stilmark, backed by Canada-based OMERS Infrastructure and ATN International, with that group advised by Royal Bank of Canada and Q Advisors.
The Crown Castle business Axicom, owned by Macquarie Infrastructure and Real Assets, is also believed to be interested and is working with Credit Suisse and Macquarie Capital, while Morrison & Co and the Future Fund are being advised by Barrenjoey Capital.
Lendlease is also understood to be lining up with help from adviser Morgan Stanley.
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