Canada’s OMERS signs No.2 tower deal in Australia
It turns out Canadian investor OMERS’ talks to acquire phone towers company Stilmark were more advanced than we realised.
Only two days after Street Talk reported that OMERS was trying to stitch up an acquisition, the deal was signed, sealed and delivered.
OMERS announced on Wednesday that it had acquired mobile tower owner, developer and operator Stilmark, its second Australian telco towers deal in two months.
The two deals will work in tandem to create a larger mobile telecommunications infrastructure play; the TPG Telecom portfolio provides the bulk of the towers, while Stilmark brings its portfolio and seasoned management team.
It’s a coup for OMERS, which snatched the TPG deal with a stealth pre-auction proposal, and boosts its credentials as one of the most effective infrastructure M&A teams in Australia, where it is led by Asia-Pacific boss Chris Curtain and managing director Kevork Sahagian.
Stilmark has been around since 2013 and 18 months ago set up a joint venture, dubbed Symphony Consortium, to work together to chase Australian towers portfolios.
Its biggest investor was Nasdaq-listed ATN International, which made $US650 million revenue last year from telco sector investments in North America and globally, while its other shareholders included Australian private equity firm Five V Capital, its board and management team.
“We have developed a strong relationship with and respect for the Stilmark management team and their capabilities,” Curtain said in a statement.
“Stilmar’s an excellent fit for our new Australian digital infrastructure portfolio, as it complements our recent investment in TPG’s mobile tower and rooftop portfolio,”
Stilmark chairman Graham Bradley said the firm was “excited about the opportunities this creates for our team to continue our innovation leadership in the tower market.”
OMERS also has stakes in Port of Melbourne, Transgrid and renewable energy business FRV Australia.
RBC Capital Markets, Corrs and PwC were in OMERS’ corner, while boutique Q Advisors, Kain Lawyers and KPMG tended to Stilmark.
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