Indonesia’s Tower Bersama Infrastructure has confirmed it would buy 2,500 towers from local telecom services provider Indosat in a deal valued at US$519m.
The transaction price is split between an upfront consideration of US$406m and a maximum…
Indonesia’s Tower Bersama Infrastructure has confirmed it would buy 2,500 towers from local telecom services provider Indosat in a deal valued at US$519m.
The transaction price is split between an upfront consideration of US$406m and a maximum potential earn-out amount of US$113m.
“The upfront consideration will comprise cash as well as newly issued [Tower Bersama] shares. The cash consideration will be based on trailing market prices over a period prior to closing, and will represent approximately 5% of [Tower Bersama]’s enlarged share capital,” Bersama stated.
It added that the deal would be financed via bank debt, the new shares to be issued to Indosat and internally-generated funding. Deal completion is expected by Q2 2012.
In 2010, Indosat director Fadzri Sentosa revealed that Citi was advising the company on its tower sale process. Barclays Capital is believed to be acting as financial adviser for Bersama.
This acquisition is the second tower transaction for Bersama within just a few months.
In late September, the company finalised the purchase of local independent towerco Mitrayasa Sarana Informasi (Infratel) for Rp200bn (US$23.5m).
Bersama, which is majority-owned by Saratoga Capital and Provident Capital, currently controls approximately 4,900 towers in the country.
It is suggested that the deal with Indosat, which is controlled by Qatari incumbent QTel, will see Bersama becoming the largest independent towerco in Indonesia’s crowded tower market.
Another potential deal in the pipeline is XL Axiata reportedly looking to sell up to 8,500 telecom towers, as it seeks to focus on its core businesses, including data services.
