AustralianSuper and Singtel’s Australian associate, Australia Tower Network (ATN), on April 1, announced that they will acquire Axicom for A$3.58 billion ($3.63 billion).
Axicom is one of Australia’s leading providers of telecommunications tower infrastructure. It owns and operates some 2,000 telecommunication sites located in metro and outer-metro locations across all eight states and territories and major cities in Australia.
ATN’s wholly-owned subsidiary had entered into a securities sale agreement to acquire the stapled structure comprising Axicom HoldCo Pty Ltd, Axicom Asset HoldCo Pty Ltd and Axicom Hold Trust.
Singtel will, through a wholly-owned subsidiary, fund part of the Axicom acquisition for A$212 million. The sum will be paid via a combination of the subscription for new ATN shares and unsecured shareholder loans.
As ATN’s shareholders, AustralianSuper and Singtel said the “strong synergies between Axicom and ATN would provide exceptional growth opportunities which will benefit customers, employees, and the community in the long term”.
Nik Kemp, AustralianSuper’s head of infrastructure, said that Axicom is a high-quality asset that will deliver long-term value to AustralianSuper members.
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“Axicom is complementary to our existing digital infrastructure portfolio and this acquisition will result in the creation of a provider with a truly national footprint that will connect the vast majority of Australian families and businesses,” he adds.
“Axicom has all of the characteristics we are looking for in an infrastructure asset and there are strong synergies between the two organisations. We look forward to working with the great teams of both ATN and Axicom to bring these two strong businesses together and leverage the great opportunity we have to continue to deliver for customers and AustralianSuper members,” Kemp continues.
Lim Cheng Cheng, Singtel group’s chief corporate officer called the acquisition a “unique opportunity to scale up ATN’s operations and expand its customer base”.
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“It also reinforces Singtel’s commitment as a long-term investor in the Australian telecoms space where our goal has always been to provide more options and build better communications for Australian consumers and businesses. In combining ATN and Axicom, AustralianSuper and Singtel will be working closely to realise the significant operational synergies created,” Lim adds.
AustralianSuper had previously acquired a 70% stake in Singtel in November 2021. Following the acquisition of Axicom, Singtel’s effective interest in ATN will be diluted to 18% from 30% previously.
ATN will continue to be equity accounted for as an associate.
Kemp said AustralianSuper will continue to seek further opportunities in this sector both domestically and globally. “AustralianSuper is looking to double its infrastructure portfolio over the next five years from its current A$31 billion. We believe that there will be significant growth in demand for digital infrastructure and will actively consider future opportunities in this space.”
ATN CEO Cameron Evans, said ATN was looking forward to broadening the relationship with Axicom’s customers and providing them with access to the over 2000 current ATN sites and more than 565 new sites under construction.
“Bringing together Australia’s two largest independent wireless telecommunications infrastructure operators provides real strategic advantages and strong value creation opportunities. It will also provide greater support for our customers as they continue to deliver essential services to the community such as mobile coverage, internet services, broadcast and emergency services,” he adds.
“We look forward to working with the team at Axicom to bring our two businesses together and leverage the opportunities we have with our top-quality digital infrastructure to connect Australians for generations to come,” he continues.
Shares in Singtel closed 2 cents lower or 0.75% down at $2.64 on March 31.
