Indonesian telco Telekomunikasi Indonesia (Telkom) is considering merging its tower unit with another towerco in order to expand the business, reports Reuters.
Tower Bersama, Sarana Menara, Solusi Tunas Pratama (STP) and Centrin Online are potential…
Indonesian telco Telekomunikasi Indonesia (Telkom) is considering merging its tower unit with another towerco in order to expand the business, reports Reuters.
Tower Bersama, Sarana Menara, Solusi Tunas Pratama (STP) and Centrin Online are potential candidates for a merger, but official discussions have not started yet according to Indra Utoyo, a Telkom director cited in the report.
“The plan is to unlock the value of [Telkom’s tower subsidiary] Mitratel, which could be via a merger with listed telecom firms or an IPO,” he said.
Barclays Capital will be advising Telkom on the potential deal, according to Reuters.
If the merger comes to fruition, it will create the largest towerco in Indonesia.
Mitratel manages around 3,000 towers and is reportedly in the process of acquiring 14,000 towers from sister company Telkomsel, in which Singapore’s Singtel has a 35% stake.
Indonesian towercos have seen a flurry of M&A activity in recent times. As TelecomFinance previously reported, Carlyle Group-backed STP is looking to buy 300 towers from Hutchison Telecommunications, while Axis Telekom Indonesia, a towerco subsidiary of Saudi Telecom Company (STC), is looking to sell 1600 towers for US$300m.
