Global investment company Blackstone (BX) is in advanced talks to buy Australian data center company AirTrunk for a massive $13.5 billion (AU$20 billion), including debt. The details of the deal remain unknown as talks are still private. The deal could be signed as early as this week. A bid to acquire AirTrunk has been going on for a while, with the Blackstone-led consortium emerging as one of the active bidders.
AirTrunk is a hyperscale data center specialist operating in the highly lucrative Asian market, with operations in Australia, Singapore, Hong Kong, Japan, and Malaysia.
Here’s More About the AirTrunk Deal
Macquarie Group Ltd. and PSP Investments jointly own 88% of AirTrunk, though individual stakes are unknown. The duo is said to be finalizing the deal’s details with Blackstone. Canada Pension Plan Investment Board (CPPIB) is one of the partners of the Blackstone-led consortium.
The acquisition could mark one of the largest infrastructure deals so far this year. Bloomberg has been reporting on the various funding sources related to the AirTrunk deal in recent months. Blackstone is reportedly in talks with banks to raise AU$5.5 billion at the holding company level. Moreover, four banks have underwritten an AU$7 billion pre-arranged funding package for AirTrunk’s bidders. Meanwhile, private credit funds could offer at least AU$1.5 billion of junior debt.
Insights from TipRanks’ Bulls Say, Bears Say Tool
Amid the possibility of a major deal, analysts are encouraged by the favorable macro environment that supports Blackstone’s investment opportunities. Further, according to TipRanks’ Bulls Say, Bears Say tool, the Bulls see Blackstone as one of the beneficiaries of investments in growth themes such as AI (artificial intelligence).
On the other hand, Bears are concerned about Blackstone’s missed Q2 expectations and the underperformance of shares, which do not display a good risk-reward profile.
Is Blackstone a Good Stock to Buy Now?
Wall Street remains divided about Blackstone stock’s trajectory. On TipRanks, BX stock has a Moderate Buy consensus rating based on seven Buys and ten Holds. Also, the average Blackstone price target of $137.33 implies 3.5% downside potential from current levels. BX shares have gained nearly 11% so far this year.
