Singtel has agreed to sell a 70 percent stake in a subsidiary that houses Optus’ telecommunications towers to AustralianSuper for $1.9 billion.
Bids for the stake in Australia Tower Network (ATN) closed earlier this week in an auction process that started back in May.
ATN has 2312 mobile network towers and rooftop sites. The price for a 70 percent stake in the company values it at approximately $2.3 billion.
“Under the terms of the deal, Optus will have continued access to the sites through a long-term lease agreement with ATN,” the telco said in a statement.
Optus will also be the anchor tenant for 565 new sites to be built over the next three years, “forming an integral part of Optus’ 5G network.”
Optus CEO Kelly Bayer Rosmarin said the transaction “unlocks significant value for the organisation.”
“The sale of these assets positions Optus well for the future as it provides capital to support core business growth while importantly allowing us to maintain the competitive advantage of our network’s active elements which continue to top independent reports on speed and quality of our network,” she said.
Singtel said it expects net cash proceeds after transaction costs of approximately $1.9 billion.
Completion of the transaction is expected by the end of October, subject to certain conditions.
At the end of June, rival Telstra sold 49 percent of its towers business to a consortium of the Australian Government Future Fund, Commonwealth Superannuation Corporation and Sunsuper for $2.8 billion.