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Indosat to sell 2,500 towers for $519m
09 February 2012
Indonesian mobile operator Indosat signs sale and leaseback deal with Tower Bersama for 2,500 towers
Indosat has entered into a $519 million deal to sell 2,500 towers to Tower Bersama Infrastructure and its Solusi Menara Indonesia subsidiary, and lease them back for a minimum of 10 years. The $406 million upfront consideration will include cash and newly-issued TBIG shares. The deal is subject to several approvals, including those from Tower Bersama shareholders as well as certain Indosat bondholders and lenders.
Harry Sasongko, president, director and CEO of Indosat, said that the agreement “enables us to monetise a portion of our non-core assets at an attractive valuation, in line with our strategy”.
The operator will use the proceeds from the deal towards repayment of outstanding debt, capital investment and general corporate purposes. Indosat is also likely to own at least 5% stake in Tower Bersama, following completion of the deal.
Sasongko said: “The sale allows us to demonstrate tangible return on investment while unlocking the value of a portion of our tower business and freeing capital for reinvestment in the core business. Tower Bersama has a longstanding commitment to both the tower industry and Indonesia and we look forward to working with them over the long term.” GTB
Further reading from Global Telecoms Business:
Thailand considers tower sharing licences 08 Feb 2012
Etisalat plans selling African towers 02 Feb 2012
American Tower and MTN in Uganda JV 12 Dec 2011
KPN to offload Dutch mobile towers 12 Dec 2011
Batelco to sell towers to fund acquisitions 06 Dec 2011