I Squared eyes DigitalBridge towers in South-east Asia: source

I SQUARED Capital is considering buying some of the assets of DigitalBridge Group’s South-east Asian telecom tower operator, according to people with knowledge of the matter.

DigitalBridge had been evaluating a potential full sale of the company, Singapore-based EdgePoint Infrastructure, but was unable to reach an agreement with I Squared on valuation, the people said, asking not to be identified because the deliberations were private.

While various options are being discussed, the US-based infrastructure-focused investment firm may primarily be interested in EdgePoint’s assets in Malaysia and the Philippines, the people said. Those parts of the business could be worth as much as US$2 billion, they said.

Meanwhile, the Indonesian assets, which may be valued at about US$1 billion, could attract interest from bidders including domestic players, the people added.

Talks are ongoing and may not result in a sale, the people said. Representatives for I Squared and DigitalBridge declined to comment.

Singapore-based EdgePoint operates about 15,000 telecom towers in Indonesia, Malaysia and the Philippines, its website shows. EdgePoint is also backed by Abu Dhabi Investment Authority.

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In September, Bloomberg News reported that US-based DigitalBridge was working with financial advisers on a strategic review that may lead to a full or partial sale of EdgePoint. DigitalBridge had been seeking a valuation of as much as US$4 billion for the telecom tower business in any transaction, people familiar with the matter said at the time. BLOOMBERG