Optus ramps up $2bn sale of communication towers

It is understood Optus has employed the services of accounting firm PwC for the sale of its communication towers portfolio.

Optus is understood to have tapped additional advisers to work on the sale of its $2bn portfolio of communication towers, with accounting firm PwC understood to have an involvement.

It is understood PwC is carrying out due diligence for Optus on the portfolio. Earlier, Bank of America was assisting with the sale after conducting a scoping study on the towers.

The start of the sales process is weeks away, with flyers promoting the opportunity in the market shortly and it is expected to get under way in earnest during August.

So far, it is known that Macquarie Infrastructure and Real Assets is a sure contender.

MIRA owns communications infrastructure business Axicom and has committed to work with Macquarie Capital and Credit Suisse for an acquisition.

Axicom was formed through the purchase of Crown Castle in 2015 for $2bn. In recent years, it has bought 56 communications towers from Southern Cross Media, expanding its reach across regional Australia.

The challenge for MIRA is whether regulators would approve an acquisition. So far, various groups are expected to be interested in the towers, but what is not clear so far is how the portfolio will be structured.

Another key consideration is the view of the Foreign Investment Review Board, with the assets seen as highly sensitive from a government security perspective.

Underbidders for the Crown Castle tower sale process in 2015 are expected to line up, including AMP Capital, Morrison & Co and infrastructure funds such as Palisade Investment Partners, Brookfield with Digital Bridge Holdings and Providence Equity.

Palisade is expected to compete for the assets as it is in pursuit of the John Laing renewable assets jointly with First State Super as its partner. It will be interesting to see whether Chinese suitors emerge.

Pacific Hydro owner State Power Investment Corp has emerged as a possible buyer for the John Laing business, which shows Chinese groups are eyeing market opportunities.