Ooredoo announced yesterday that PT Indosat Tbk. (Indosat Ooredoo), a leading digital telco in Indonesia, has signed Sales and Purchase Agreements (SPAs) with each of PT. Dayamitra Telekomunikasi (Mitratel), and PT Profesional Telekomunikasi Indonesia (Protelindo), which have been declared the winning bidders of a competitive tender process for the sale by Indosat Ooredoo of 3,100 telecommunications towers.
The transactions are subject to customary closing conditions including shareholders’ approval of the company’s EGMS in November 21, 2019.
In a regulatory filing to Qatar Stock Exchange (QSE), Ooredoo noted Mitratel has been awarded 2,100 towers and Protelindo has been awarded 1,000 with a total transaction amount of IDR 6.39trillion approx. QR1.64bn. The respective transaction considerations are all in cash to be paid fully at closing. Closing of each transaction is anticipated to take place before the end of the year.
Indosat Ooredoo will simultaneously enter into a 10 year lease with each buyer for space on the sale towers at transaction closing.
Sheikh Sauod bin Nasser Al Thani, Group Chief Executive Officer of Ooredoo said: “We are pleased with the signing of these agreements, which will deliver significant benefits to all involved parties.
Two of Indonesia’s leading tower providers will lease these high quality tower portfolios back to Indosat Ooredoo on attractive terms. Monetising some non-core assets at a fair valuation will allow Indosat Ooredoo to unlock value of a portion of their tower business in order to speed up the execution of their strategy.”
