SingTel receives two bids for Optus Satellite
Singapore operator SingTel has reportedly received two offers for its Australian satellite business, with one coming from Intelsat SA.
According to sources, the offers came in just below the $1.8 billion reserve price set for auction and the company’s board will hold a meeting next week to decide whether to either hold an IPO or ask bidders to raise its price.
It is thought Australia is a front runner to list the business if SingTel pursues an IPO. SingTel decided to put the business up for sale in March after a strategic review of its assets, as the company seeks to reinvest the funds in high growth markets.
US-listed Intelsat operates as the world’s biggest satellite operator and made its bid ahead of next week’s deadline. The second bid has reportedly came from a consortium, with investors including Blackstone Group LP, TPG Capital and Malaysia’s MEASAT Global.
SingTel acquired Optus in 2001 for $14 billion, and the company sells TV, telephony and broadband services to 2 million subscribers in Australia and New Zealand.
According to sources, at least two bidders from a shortlist of six have already dropped out, including French company Eutelsat Communications.
Eutelsat struck a deal to acquire Mexican satellite operator Mexicanos SA in July, and it is through the other company to drop out is French satellite provider SES.
Shortlisted bidders include US firm Apollo Global Management and Japanese satellite company Sky Perfect JSAT Holdings.