Singtel in talks to sell 30% Optus stake to New Zealand investor Morrison, AFR says

SINGTEL is in advanced talks to sell a more than 30 per cent stake in Australia’s Optus to Morrison in a deal potentially valued at over A$2 billion (US$1.4 billion), the Australian Financial Review reported.

Wellington-based infrastructure investor Morrison has secured a seven-week exclusivity period to finalise the potential purchase, AFR said on Wednesday (Jul 29), citing unidentified people involved in the negotiations.

The deal could end Singtel’s 25 year-long run at being the Australian carrier’s sole owner, the AFR added. 

Morrison’s New York-based chief investment officer William Smales flew to Sydney to meet with investment bosses of the superannuation sector, and urged them to join its bidding consortium with a pitch of “bringing Optus home”, AFR reported, citing a pitch deck for potential capital partners.

Discussions are under way with at least six superannuation funds. There is no certainty a deal will go through and Morrison is still testing investor appetite, AFR said. 

Both Singtel and Morrison declined to comment when contacted by Bloomberg. BLOOMBERG