KKR, Carlyle Group to bid for Sing Tel’s Australian unit Optus Satellite: report

Private equity firms KKR and Carlyle Group are among the interested suitors that are likely to bid for Singapore Telecommunications Ltd's (Sing Tel) Australian unit, Optus Satellite, Reuters today reported, citing people familiar with the matter.

Sing Tel, Southeast Asia's biggest telecom company, had last week put Optus Satellite on the block after conducting a review in March, and is reported to be seeking more than A$2 billion ($1.9 billion) from the sale.

SingTel is inviting first round offers by 14 June and France's Eutelsat Communications, Blackstone Group and Providence Equity Partners are also expected to bid, the report said.

Some analysts have speculated that Sing Tel may use the proceeds to help fund Optus' $1 billion 4G mobile rollout in Australia or return the money to its largest shareholder, Singapore's sovereign wealth fund Temasek Holdings.

SingTel acquired Optus Satellite as part of its $9.69-billion acquisition of Australia's second-largest phone company Optus, in 2001.

With five satellites, Optus Satellite has the largest fleet of domestic satellites in the Australia and New Zealand region.

Optus Satellite, which is expected to launch a sixth satellite Optus 10 this year, broadcasts signals to more than two million Australian households and companies.

Optus Satellite has annual revenue of A$319 million and had EBITDA of around A$225 million for 2012.