Indonesian telecoms services provider Indosat has closed the sale and lease back of 2,500 towers to local towerco Tower Bersama for US$406m.
First announced in February, the transaction required approvals from Indosat’s bondholders and lenders, as…
Indonesian telecoms services provider Indosat has closed the sale and lease back of 2,500 towers to local towerco Tower Bersama for US$406m.
First announced in February, the transaction required approvals from Indosat’s bondholders and lenders, as well as Tower Bersama’s shareholders. Indosat is majority-owned by Qatar Telecom (Qtel).
TelecomFinance understands that Barclays advised Tower Bersama on the deal while Indosat hired Citigroup.
The deal value consists of a cash component and approximately 240 million of newly issued Bersama shares, representing 5% of the company’s enlarged share capital.
Indosat said that proceeds will go towards the repayment of outstanding debt, ongoing capital investment and for general corporate purposes.
Commenting on the sale, Indosat CEO Harry Sasongko said: “The transaction is a demonstration of a key element of our strategy where we seek to successfully dispose of non-core assets to enable us to focus on the development if our core wireless business.
“The disposal of a portion of our tower business allows us to benefit from ongoing maintenance capital expenditure and operational savings whilst freeing capital for reinvestment in our core business as well as reducing our overall debt position.”