Post by Admin on Aug 9, 2013 9:26:24 GMT 8
09-08-2013 01:05:49
SingTel gets two offers for Australian satellite business -sources
By Stephen Aldred
HONG KONG, Aug 8 (Reuters) - Singapore Telecommunications
(SingTel) has received at least two offers for its
Australian satellite business in the final round of the bidding
process, including one from U.S.-listed Intelsat SA ,
sources familiar with the matter said.
SingTel, Southeast Asia's largest telecom operator, has been
seeking a sale of the satellite division of its Australian unit
Optus since a strategic review of the asset in March.
It wants to use the sale proceeds in fast-growing emerging
markets and set a reserve price of A$2 billion ($1.8 billion)
for the business.
Intelsat, the world's biggest operator of satellite
services, made their offer ahead of this week's bid deadline,
according to one of the two sources.
The second offer came from a consortium made up of
Blackstone Group LP , TPG Capital [TPG.UL] and Malaysia's
MEASAT Global, the second source said.
However the offer was subject to further due diligence as
the information provided was not deemed sufficient to arrive at
a firm valuation for the Australian company, the source added.
Blackstone, TPG, MEASAT and SingTel did not respond to
emails seeking comment. Intelsat declined to comment.
SingTel is still evaluating the two offers and has not made
a final decision yet, said the sources, who declined to be named
as the process was private.
SingTel, controlled by Singapore state investor Temasek
Holdings [TEM.UL], acquired the satellite arm when it bought
Optus in 2001 for $14 billion. Optus sells TV, telephony and
broadband services to more than 2 million subscribers in
Australia and New Zealand.
At least two bidders from a shortlist of six dropped out of
the auction process in recent weeks, including France's Eutelsat
Communications , the sources said.
IPO OPTION
SingTel hired Credit Suisse and Morgan Stanley
to conduct a review of the satellite business and they
are now running the sale.
The Singaporean company would fall back on the alternative
option of an initial public offering (IPO) if the offers do not
meet expectations, the sources said.
The consortium had requested information on the length of
contracts related to customers of Optus' satellites among other
details to make a firm offer, according to one source, but had
not received answers.
Paris-based Eutelsat dropped out of the process, a separate
source with knowledge of the matter said, after it agreed to buy
Mexico's Satelites Mexicanos SA in July for an enterprise value
of $1.14 billion. [ID:nL1N0G120D]. Eutelsat declined to comment.
Another French firm, SES SA dropped out of the
bidding earlier in July, according to other sources with
knowledge of the matter. SES did not respond to requests for
comment.
It was not immediately clear if the other shortlisted
bidders, U.S. buyouts firm Apollo Global Management and
Japanese satellite company Sky Perfect JSAT Holdings Inc
<9412.T>, had made final offers.
($1 = 1.1125 Australian dollars)
(Reporting by Stephen Aldred; Editing by Denny Thomas and
Pravin Char)
SingTel gets two offers for Australian satellite business -sources
By Stephen Aldred
HONG KONG, Aug 8 (Reuters) - Singapore Telecommunications
(SingTel) has received at least two offers for its
Australian satellite business in the final round of the bidding
process, including one from U.S.-listed Intelsat SA ,
sources familiar with the matter said.
SingTel, Southeast Asia's largest telecom operator, has been
seeking a sale of the satellite division of its Australian unit
Optus since a strategic review of the asset in March.
It wants to use the sale proceeds in fast-growing emerging
markets and set a reserve price of A$2 billion ($1.8 billion)
for the business.
Intelsat, the world's biggest operator of satellite
services, made their offer ahead of this week's bid deadline,
according to one of the two sources.
The second offer came from a consortium made up of
Blackstone Group LP , TPG Capital [TPG.UL] and Malaysia's
MEASAT Global, the second source said.
However the offer was subject to further due diligence as
the information provided was not deemed sufficient to arrive at
a firm valuation for the Australian company, the source added.
Blackstone, TPG, MEASAT and SingTel did not respond to
emails seeking comment. Intelsat declined to comment.
SingTel is still evaluating the two offers and has not made
a final decision yet, said the sources, who declined to be named
as the process was private.
SingTel, controlled by Singapore state investor Temasek
Holdings [TEM.UL], acquired the satellite arm when it bought
Optus in 2001 for $14 billion. Optus sells TV, telephony and
broadband services to more than 2 million subscribers in
Australia and New Zealand.
At least two bidders from a shortlist of six dropped out of
the auction process in recent weeks, including France's Eutelsat
Communications , the sources said.
IPO OPTION
SingTel hired Credit Suisse and Morgan Stanley
to conduct a review of the satellite business and they
are now running the sale.
The Singaporean company would fall back on the alternative
option of an initial public offering (IPO) if the offers do not
meet expectations, the sources said.
The consortium had requested information on the length of
contracts related to customers of Optus' satellites among other
details to make a firm offer, according to one source, but had
not received answers.
Paris-based Eutelsat dropped out of the process, a separate
source with knowledge of the matter said, after it agreed to buy
Mexico's Satelites Mexicanos SA in July for an enterprise value
of $1.14 billion. [ID:nL1N0G120D]. Eutelsat declined to comment.
Another French firm, SES SA dropped out of the
bidding earlier in July, according to other sources with
knowledge of the matter. SES did not respond to requests for
comment.
It was not immediately clear if the other shortlisted
bidders, U.S. buyouts firm Apollo Global Management and
Japanese satellite company Sky Perfect JSAT Holdings Inc
<9412.T>, had made final offers.
($1 = 1.1125 Australian dollars)
(Reporting by Stephen Aldred; Editing by Denny Thomas and
Pravin Char)