Optus tower sale gets interesting as bidder looks to buy rival

The theory is that some of the suitors would be in a position to buy both a rival and the Optus portfolio. Picture: NCA NewsWire/David Mariuz

The sales process for the $2bn portfolio of Australian telecoms towers owned by Optus has taken an interesting turn, with at least one of the suitors said to have approached competitors to sound out their willingness to sell their businesses as well.

It is understood at least one of the suitors has been approached in what sources say is a sign of the amount of capital in the market focused on infrastructure opportunities.

The theory is that some of the suitors would be in a position to buy both a rival and the Optus portfolio. Some believe the Macquarie Infrastructure and Real Assets-owned telco Axicom could be a seller, with one of the investors being a UBS-controlled closed-end infrastructure fund that will soon need to make an exit, while MIRA at some stage will also need to cash out.

Morrison & Co was the underbidder in the auction for Axicom some years back, so it would make sense that it might again be an interested buyer.

First-round bids were due on June 17 in the Bank of America-run competition to buy a 70 per cent stake in the Optus tower portfolio. The understanding is that about 10 indicative offers have been received.

Lendlease and Cellnex together with IFM have bowed out, as earlier reported.

DataRoom understands that Aware Super, Canadian pension fund CDPQ and AMP Capital have all approached Lendlease to test its interest in forming a consortium.

A shortlist is believed to be imminent.

At least two global parties are understood to have been in the mix after the first round bid phase.

Earlier, Digital Colony was believed to be competing, aided by Goldman Sachs and the Blackstone-backed Phoenix Tower International.

Axicom is advised by Credit Suisse and Macquarie Capital.

Australian telecoms tower company Stilmark is also competing with Canadian pension fund backer Omers and ATN International, advised by RBC and Q Advisors.

Morrison & Co and the Future Fund are together, advised by Barrenjoey Capital Partners, while Canadian private equity fund Brookfield was earlier believed to be involved.

KKR, together with Queensland Investment Corp and Canada’s Ontario Teachers’ Pension Plan, is competing and they are believed to be taking advice from investment bank Citi and advisory firm Gresham.

After the Optus process, Telstra will run one for a stake in its portfolio, and the thinking is that some parties are keeping their powder dry for that competition.