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Qatar’s telecoms company Ooredoo said its Indonesian operating company, PT Indosat Tbk, has signed a sale and leaseback agreement with PT EPID Menara AssetCo for more than 4,200 telecommunications towers.
The company also known as Indosat Ooredoo has agreed to sell this portfolio of towers in a transaction valued at $750 million, including a supplementary offer, making it one of the largest deals of its kind in Asia.
Qatar’s Ooredoo, whose shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange, owns a 65 percent stake in Indosat.
The sale is part of Ooredoo Group’s strategy to move to a more efficient and flexible asset light model and unlock the trapped value of its infrastructure portfolio.
Prior to this deal, Ooredoo had a global portfolio of approxatimely 27,000 owned towers, representing an infrastructure portfolio of significant value for the Group. Monetising these assets to create more value for both shareholders and customers is a key focus of Ooredoo’s current strategy, the telecoms company said in a statement on its website.
Indosat Ooredoo will lease back space on the towers for a period of 10-years to meet its ongoing requirements.
PT EPID Menara Asset Co, also known as Edge Point Indonesia, was declared the winning bidder of a competitive tender process conducted by Indosat Ooredoo.
The transaction is expected to close in Q2 2021 subject to customary conditions, including shareholder approval by Indosat Ooredoo at an EGM, which is planned to be held on May 6.
PT EPID Menara AssetCo is an Indonesian subsidiary of Edge Point Singapore, which is wholly owned by Digital Colony, a global digital infrastructure investor with extensive experience owning and operating cellular towers.
“The sale will unlock capital to create value for shareholders and continue to build Indosat Ooredoo’s strong growth momentum through improvements to network performance and the launch of innovative new digital solutions to enhance the customer experience,” the company said.
J.P. Morgan acted as financial advisor to Indosat Ooredoo throughout the transaction.
Indonesia recently passed a new law simplifying doing business and allowing spectrum-sharing between telecom companies in the hope of driving consolidation in the market.
(Reporting by Brinda Darasha; editing by Seban Scaria)
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