Indonesian incumbent Telekomunikasi Indonesia (Telkom) is considering selling a 49% stake in its tower unit Mitratel in order to focus on its core business.
The company’s president director Arief Yahya told reporters that three options are on the…
Indonesian incumbent Telekomunikasi Indonesia (Telkom) is considering selling a 49% stake in its tower unit Mitratel in order to focus on its core business.
The company’s president director Arief Yahya told reporters that three options are on the cards for Mitratel: an IPO; a sale to a local listed towerco; or a merger with a rival.
A report in February suggested that Barclays is advising Telkom on the process.
Several tower operators have reportedly been invited to study a potential acquisition, including Tower Bersama, Sarana Menara, PT Solusi Tunas Pratama (STP) and PT Centrin Online.
A few days ago, Tower Bersama CEO Herman Setya Budi confirmed that his company is participating in a beauty contest to buy Mitratel. Bersama, advised by UBS, submitted a bid in July.
In February last year, Tower Bersama agreed to buy 2,500 towers from Indosat in a US$519m deal.
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.
Telkom was not immediately available for comment.
