Indosat Sells 4,200 Towers To Edge Points For IDR 10.9 Trillion

Cell tower illustration. (Photo: By courtesy)

JAKARTA - PT Indosat Tbk announced the signing of a sale and leaseback agreement for more than 4,200 telecommunication towers with PT EPID Menara Asset Co. (Edge Point Indonesia) worth a total of 750 million US dollars or the equivalent of IDR 10.9 trillion (exchange rate of IDR 14,552).

President Director of Indosat Ahmad Al-Neama said the sale will open up capital to build growth momentum in the company's network performance.

"Obtaining revenue from a portfolio of high quality telecommunication towers is the main pillar of the company's current strategy," he said in a press statement, Tuesday, March 30.

Ahmad added that the agreement marks the third and final sale of the portfolio assets towards a leaner asset model and a greater focus on delivering mobile digital services.

"I would like to thank the Indonesian government for creating a policy environment that allows the telecommunications industry to develop and attract investors which will ultimately benefit Indonesian customers and society itself," he said.

For information, Edge Point Indonesia was declared the winner of a tender conducted by Indosat some time ago.

This transaction is planned to be completed in the second quarter of 2021 subject to shareholder approval at the Extraordinary General Meeting of Shareholders (EGMS), which was scheduled to be held on 6 May.

"We will lease back the towers for a period of 10 years to meet the applicable requirements," he said.

On the same occasion, Edge Point Group CEO Suresh Sidhu welcomed the transaction. According to him, the agreement is one of the largest in Asia and strengthens the company's position as a leading tower provider in Indonesia.

"We are very pleased to be able to further strengthen our strategic partnership with Indosat which has grown over the years," he said.

"The addition of 4,200 towers to our portfolio will help create significant value for all of our stakeholders," he continued.

To note, Edge Point Indonesia is a subsidiary of Edge Point Singapore which is wholly owned by Digital Colony, a global digital infrastructure investor that focuses on the operational business of cell towers.