Indonesian mobile operator XL Axiata could sell the majority of its remaining tower portfolio next year if it needs to raise funds, according to local reports citing CEO Hasnul Suhaimi.
He said the country’s second-largest mobile player is open to…
Indonesian mobile operator XL Axiata could sell the majority of its remaining tower portfolio next year if it needs to raise funds, according to local reports citing CEO Hasnul Suhaimi.
He said the country’s second-largest mobile player is open to selling 4,500 of its 5,500 towers depending on its financial situation.
A spokeswoman told TelecomFinance that the group “has not taken any decision at this point with regards to the remaining towers”.
It sold 3,500 sites to local towerco Solusi Tunas Pratama (STP) earlier this month for Rp5.6trn (US$460m), marking Indonesia’s largest tower deal to date.
BofA Merrill Lynch acted as XL Axiata’s exclusive financial adviser on the sale, which Suhaimi said was part of an “asset-light strategy”, with the proceeds helping it to deleverage.
STP hired Standard Chartered and JP Morgan for financial advice, and the towers were rumoured to have also attracted the interests of local towerco Tower Bersama, Sarana Menara Nusantara and Inti Bangun Sejahtera.
XL Axiata, owned by Malaysian telecoms giant Axiata, had Rp45.4trn (US$3.74bn) in total liabilities at the end of H1, largely due to its US$865m acquisition of smaller rival Axis Telekom in March.
