*GIP IN TALKS TO JOIN RIVAL BIDDER GROUP AT AIRTRUNK’S SALE: AFR...

*GIP IN TALKS TO JOIN RIVAL BIDDER GROUP AT AIRTRUNK’S SALE: AFR (JUL/28/2024)

GIP in talks to join rival bidder consortium at AirTrunk’s $20b sale AFR - GIP in talks to join rival bidder consortium at AirTrunk’s $20b sale (Financial Review) Global Infrastructure Partners is considering abandoning its sole bid for the $20 billion data centre giant AirTrunk, as it considers if it is better off joining forces with a rival consortium being spearheaded by IFM Investors and NYSE- listed DigitalBridge.

AirTrunk, founded by Robin Khuda, has gone from zero to $20 billion in less than a decade. Louie Douvis Lender sources said the $US112 billion ($168.8 billion) GIP’s dealmakers, including New Yorker Will Brilliant and local Rob Stewart, have all but agreed to join the swelling consortium. It comes after AirTrunk’s bankers collected non- binding bids in late June, and bidders have gone through a round of talks with the data centre giant’s 40-plus lending syndicate.

Should GIP join the now three-headed bidder group as expected, AirTrunk is set to turn into a two-horse race, with Blackstone in the opposite corner. The $600 billion Canada Pension Plan Investment Board tabled a solo first-round bid, but has been in discussions with the two leading contenders to join as a co- investor. There’s also a handful of other institutional investors hanging around the hoop, no doubt hoping to tag along with either of the two bidding consortiums. For example, technology investor Silver Lake had been talking to IFM and DigitalBridge to join its consortium.

Binding bids are due August 27.

Crunch time

Rival bidders got flesh and blood confirmation of their competition in Sydney two weeks ago, as they descended upon sell-side advisers Goldman Sachs and MacCap’s offices for meetings with AirTrunk management. NYSE-listed DigitalBridge’s chief executive Marc Ganzi and GIP’s Brilliant showed up, as did Blackstone and CPPIB’s data centre boffins.

Spruced-up financials have put AirTrunk’s earnings at $900 million – higher than the $600 million mark when Street Talk outed preparations for an exit in September – suggesting it could be worth as much as $20 billion. Like we’ve said before, it’s worth half an airport deal.

It’s a veritable feast for the banks involved, which are devoting their top advisory talent across both infrastructure and real estate to the proceedings at AirTrunk in hopes of making big fees. The DigitalBridge and IFM consortium is being advised by Barrenjoey Capital Partners, while Blackstone has Morgan Stanley and Deutsche Bank. GIP has engaged JPMorgan. CPPIB is advised by RBC Capital Markets. Bidders have had access to detailed due diligence materials from the get-go.

AirTrunk was founded in 2015 by Robin Khuda and has since grown to be one of the largest data centre players in tier 1 markets in the Asia-Pacific region. PSP and Macquarie own 88 per cent, with the rest in the hands of Khuda and a few executives.