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Optus Considering Selling Off Fibre Assets

Singtel is currently holding talks with advisers regarding a potential stake sale of its Optus fibre assets in Australia, according to Bloomberg, who cite “people familiar with the matter.”

This deal would follow last year’s sale of a 70 per cent stake in Australia Tower Network, the subsidiary that holds Optus’ telco towers, to AustralianSuper for $1.9 billion.

Telstra also sold 49 per cent of its towers business last June to a consortium of superannuation companies for $2.8 billion.

Bloomberg says potential steps include a stake sale, a partnership deal, or a sale, after which Optus would lease the fibre assets back.

Singtel are yet to comment on the potential sale. Following last year’s tower sale, Optus CEO Kelly Bayer Rosmarin said the sale “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.”

Singtel’s overall earnings before interest, tax, depreciation and amortisation rose 1 per cent last year, while in Australia, Optus’ EBITDA leap 5 per cent.

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