Macquarie-owned telecoms provider Airwave could reportedly change hands in the coming weeks if its lenders consent with Motorola Solutions in talks to buy the company, which runs a network used by British emergency services, for almost £1bn (US$1.5bn).
Macquarie-owned telecoms provider Airwave could reportedly change hands in the coming weeks if its lenders consent.
Motorola Solutions (NYSE:MSI) is in talks to buy Airwave, which runs a network used by British emergency services, for an enterprise value of almost £1bn (US$1.5bn), Sky News reported citing sources.
Any transaction will hinge on the say-so of lenders to Airwave holding company Guardian Digital Communications, which is in turn held by the Macquarie European Infrastructure Fund 2.
HSBC and Lloyds provided £1.7bn (US$2.8bn) of buyout debt to Macquarie – extended in 2014 – for its £1.9bn (US$3.13bn) acquisition of Airwave from Telefónica subsidiary O2 in 2007, and would reportedly be now asked to endorse a scheme of arrangement.
Lazard is reported to be running the sale process for Macquarie and Motorola is the only bidder left after Hong Kong Telecom dropped out of the process.
All the companies declined to comment.
Airwave’s future is uncertain as the UK government has a tender out to upgrade emergency services to 4G, and abandon Airwave’s narrow band network some time in 2017.
EE, the only bidder left in the process, was last month reported to be on the verge of being announced as the new contractor.
Airwave has other smaller contracts and low-band spectrum holdings, which could be used to offer rural broadband. Motorola meanwhile reportedly has its eyes on other government communications contracts.