The Jakarta Post
Indosat Ooredoo, one of Indonesia’s major telecommunications companies, has agreed to sell as many as 3,100 telecommunication towers to two local companies PT Daya partner Telekomunikasi (Mitratel) and PT Professional Telekomunikasi Indonesia (Protelindo).
Under the sale and purchase agreement signed in Jakarta on Tuesday, Mitratel will buy 2,100 of the towers, while Protelindo will acquire the remaining 1,000, with a total transaction value of Rp 6.39 trillion (about US$456 million), Indosat said in a statement issued following the signing of the agreement.
Payment will be made entirely in cash upon completion of the transaction, which is expected to be completed later this year, Indosat said. However, the transaction settlement process will be subject to the approval of shareholders who will hold an extraordinary general shareholders meeting in November to approve the transaction.
After the deal is concluded, Indosat will lease back the towers for 20 years from the two buyers. "This transaction allows Indosat Ooredoo to accelerate the implementation of our strategy, and especially to continue to ensure the best experience for our customers," said Indosat Ooredoo's president director and CEO Ahmad Al Neama.
Mitratel president director Herlan Wijanarko said the company’s tower rental business would continue to grow along with the development of technology and cellular services. "The acquisition of the 2,100 Indosat Ooredoo towers will significantly strengthen Mitratel’s business fundamentals and create added value, and is also in line with the company's long-term plans," Herlan said.
While Protelindo's managing director and CEO Ferdinandus Aming Santoso said he was confident the transaction would strengthen the company’s long-standing strategic partnership with Indosat. "The addition of 1,000 towers and approximately 1,850 tenants will further strengthen our position as the largest telecommunications tower provider in Indonesia with nearly 20,000 towers and more than 32,000 tenants," explained Ferdinandus.
J.P Morgan acted as Indosat Ooredoo's exclusive financial financial advisor. (hen)