The sale of the cell phone towers of Vodafone and Spark is picking up pace as the two companies start to line up bidders.
Vodafone is set to call for bids for its near 1,500 tower network in the next week or so. Photo: citadelle/123RF
The Australian Financial Review is reporting that both companies are ramping up the sales process of their respective tower networks to free up capital.
Spark is expected to retain at least a 30 percent stake in its telecommunications towers, with an auction of the balance expected to start in early June.
A letter being sent to potential buyers is asking for their background and experience in running such assets, what they would be willing to pay for a stake of up to 70 percent, and their likely financing arrangements.
The paper said a shortlist would be prepared from those indicating interest with binding bids being sought sometime in August.
Spark would lease space on the more than 1200 towers for an initial 15 years with rights of renewal.
Meanwhile, Vodafone is set to call for bids for its near 1500 tower network in the next week or so, with the NZ Super Fund in partnership with the Ontario Teachers Pension Plan early on tipped as a potential bidder, with specialist infrastructure investment funds from the US and Australia also expected to be interested.
The networks are said to be worth more than $1 billion apiece and are expected to attract strong interest, in line with the trend overseas which has seen high prices paid for similar assets.
Industry observers have said the sale of the networks and the subsequent reinvestment of the funds back into new services and technologies could lead to cheaper prices in due course for consumers.