Another party has dropped out of the race to buy the $2 billion portfolio of Singtel Optus Pty Limited's Optus telecoms towers - Axicom Pty Ltd. Axicom's withdrawal comes after KKR & Co. Inc. (NYSE:KKR) (Kohlberg Kravis Roberts) departed the auction at the start of the month. HRL Morrison & Co Limited also opted not to bid due to its recent acquisition of a 49% stake in Telstra's Australian tower portfolio with the Future Fund for $2.8 billion.

It is understood Axicom left the race because of the sale terms rather than due to concerns about the Australian Competition & Consumer Commission. Axicom counts Optus as a customer and some believed that gaining ACCC clearance may have been a challenge, given that it is also a significant owner of local towers. It is understood the Optus towers process is turning out to be complex and requiring a great deal of focus from bidding groups.

KKR was bidding with Ontario Teachers' Pension Plan Board and QIC Limited (the Queensland Investment Corporation), which are still said to be in the race, advised by Citi and Gresham. Other bidders are Brookfield Asset Management Inc. (TSX:BAM.A); AustralianSuper, advised by Jefferies; and the Symphony Consortium, comprising Stilmark Holdings Pty Ltd, backed by OMERS Infrastructure Management Inc., and ATN International, Inc. (NasdaqGS:ATNI). The Symphony Consortium is advised by Royal Bank of Canada and Q Advisors.

Final bids for the Bank of America-run Optus Towers competition are due at the end of September 2021.