At least two offers have been made for Singapore Telecommunications’ (SingTel’s) Australian satellite business in the final round of bidding, Reuters claims citing sources familiar with the matter, with one of those said to have come from Intelsat. Alongside Intelsat, it is understood that the second offer came from a consortium made up of Blackstone Group LP, TPG Capital and Malaysia’s MEASAT Global, although this offer is said to be subject to further due diligence as the information provided was not deemed sufficient to arrive at a firm valuation for the Australian company, one of the sources claimed. SingTel is said to still be evaluating the two offers and a final decision has yet to be made.
As previously reported by CommsUpdate, in March 2013 SingTel selected Morgan Stanley and Credit Suisse banks to play the lead role in a review of Optus Satellite, ahead of a possible sale of the unit. SingTel is said to have valued the subsidiary at around AUD2 billion (USD1.93 billion).
Meanwhile, the latest report on the sale process also claims that SingTel could still fall back on the alternative option of carrying out an initial public offering (IPO) should it decided that the offers it has received do not meet expectations.