Indonesian mobile network operator XL Axiata is reportedly looking to sell up to 8,500 telecom towers, as it aims to focus on its core businesses, including data services.
Goldman Sachs has been hired for advice on a potential transaction, XL Axiata…
Indonesian mobile network operator XL Axiata is reportedly looking to sell up to 8,500 telecom towers, as it aims to focus on its core businesses, including data services.
Goldman Sachs has been hired for advice on a potential transaction, XL Axiata confirmed in a filing to the Indonesia Stock Exchange. But the company added that the plan to sell some towers dates back to 2008 and that there has not been any new development recently.
Individual towers are currently valued at between US$100,000 and US$140,000 a piece in the country.
According to Dow Jones, company director Dian Siswarini said that three local companies have already expressed interest in the towers.
However, Hasnul Suhaimi, XL’s president director, was quoted telling the Jakarta Globe that no one has shown interest so far.
The company reportedly has 10,000 towers in total.
Indonesia is home to many independent towercos, which have in recent months voiced an intention to monetise their tower assets, either via sales or IPOs.
Recently, it was confirmed that Tower Bersama Infrastructure was close to acquiring 4,000 telecom towers from local telecom services provider Indosat.
Before that, in late September, Tower Bersama finalised the purchase of local independent towerco Mitrayasa Sarana Informasi (Infratel) for Rp200bn (US$23.5m).
As is the case for other booming economies, the country is faced with increasing mobile traffic and therefore the need for major infrastructure investment.
