Singapore Telecom to Sell 70% Stake in Australian Tower Network to AustralianSuper

Posted on 10/01/2021

Singapore Telecommunications Limited (Singapore Telecom), through Singtel ATN Pte. Ltd., sold a 70% stake in its Australian tower network (Australia Tower Network Pty Ltd) to AS Infra Tower Pty Ltd, a unit of AustralianSuper, for approximately A$ 1.9 billion. Following completion, Singtel ATN will retain its 30% shareholding in Australia Tower Network, and will enter into a shareholders’ agreement with AustralianSuper in relation to their respective interests in Australia Tower Network.

Australia Tower Network owns and operates the passive mobile tower infrastructure assets which were previously owned and operated by Optus Mobile Pty Limited, a wholly-owned subsidiary of Singtel. The transaction involving 2,312 mobile network towers and rooftop sites values Australia Tower Network at an enterprise value of approximately A$ 2.3 billion. Under the terms of the deal, Optus will have continued access to the towers through a long-term lease agreement with Australia Tower Network. Optus will be the anchor tenant on 565 new build-to-suit towers to be built over the next three years which will form an integral part of its 5G network.

The aggregate cash proceeds is made up of A$ 0.9 billion for the Sale Shares by AS Infra to Singtel ATN, A$ 0.5 billion as a return of capital by Australia Tower Network to Singtel ATN, and A$ 0.5 billion as the full repayment of outstanding loans by Australia Tower Network to Optus.

Australia Tower Network Pty Ltd secured A$ 1.25 billion of loan facilities which it will use to, among others, pay the Capital Return to Singtel ATN and pay the Optus Loan Repayment to Optus.

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