Singapore Telecommunications (Singtel) is joining the wave of telcos divesting their infrastructure assets, as the company embarks on its “strategic reset” to reverse lacklustre earnings in recent years.

On Oct 1, Singtel announced plans to sell a 70% stake in Australia Tower Network (ATN), which holds its Australia subsidiary Optus’s tower infrastructure, for A$1.9 billion ($1.8 billion).

The buyer is AustralianSuper, the largest Australian superannuation and pension fund. The transaction involves 2,312 mobile network towers and rooftop sites and values ATN at an enterprise value of approximately A$2.3 billion, representing FY2021 pro-forma EV/Ebitda transaction multiple of 38 times. This is significantly above telco multiples, reflecting the high quality of the assets and tenants.

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