JAKARTA (TheInsiderStories) – A subsidiary of PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Dayamitra Telekomunikasi (Mitratel), buys 6,050 towers of its sister company, PT Telekomunikasi Selular (Telkomsel) for Rp10.3 trillion (US$700.68 million). Earlier, the issuer announced to to merge all the group’ towers under the tower operator before conducts an initial public offering (IPO) or other corporate actions.
Based on the announcement released on Friday (10/19), both parties have signed a Conditional Sales and Purchase Agreement for this transaction. It said, after the deal, Mitratel will managed more than 22,000 towers.
“Telkomsel will focus on its main business as digital telecommunications company in Indonesia by building a digital ecosystem and providing the best digital connectivity experience for Telkomsel customers,” said the management.
According to Telkom, the IPO plan is part of the company’ portfolio management to optimize the business and assets owned by the company. There are no clear information when Mitratel will definitely take the floor on the Indonesia Stock Exchange.
Since 2011, Telkom has discoursed the subsidiary go IPO but collided with various rules. To fulfill the requirements, recently Mitratel has acquired 2,100 towers from cellular operator, PT Indosat Ooreedo Tbk (IDX: ISAT) with worth of Rp4.44 trillion (US$297.97 million).
The operator bought the towers from 3,100 sold by the competitor with total sales of Rp 6.39 trillion. As for the industry, Mitratel is the second largest tower company in terms of number of towers. The provider started to enter the telecommunication tower business since 2008 and has managed more than 16,000 telecommunication towers spread across Indonesia.
As the group, Telkom‘ net profit grow 3.50 percent compared to previous year supported by net income which reached Rp135.56 trillion. The revenues was up 3.66 percent from 2018 number of Rp130.78 trillion.
Data, internet and information technology services revenues were the Telkom‘ main contributors with total amount Rp72.78 trillion from prior year of Rp65.55 trillion. The second largest contributor came from telephone revenues worth Rp27.97 trillion, which is Rp25.09 trillion mobile telephone and Rp2.88 trillion fixed telephone.
Last year, the provider has spent Rp36.59 trillion or 27.0 percent of total revenue for business expansion. The publicly listed firm also injected more capital to its venture capital armed, PT MDI Ventures of $500 million to widens the digital business.
Last year, Telkom, prepared funds around Rp1 trillion to build new data centers. The company has acquired lands across the country for the planned. The issuer currently owns and operates 11 data centers in Indonesia under its subsidiary PT Sigma Cipta Caraka, also known as Telkomsigma.
In Singapore and Hong Kong, the operator owns four data centers under Telekomunikasi Indonesia International Pte. Ltd. (Telin Singapore). The construction of the new data center its expecting starting this year and will be operated by the unit.
On Feb. 26, Chinese Huawei Technologies Co., Ltd., and Telkomsel have signed a memorandum of understanding to accelerate development of Digital Indonesia in Barcelona, Spain. It said, both parties will cooperate to accelerate ecosystem and infrastructure development of fully connected digital in Indonesia.
Through this agreement, both parties will develop Joint Innovation Center 5.0, digital services exploration and talent development to support the building of Digital Indonesia.
Telkom as a group managed six businesses portfolios such as mobile, fixed line, wholeshale & international, network infrastructure, enterprise digital, and consumer digital. The Government of Indonesia owned 52.09 percent of the company shares while the remaining 47.91 percent shares belong to public.
Telkom’ shares are traded on the Indonesian Stock Exchange and on the New York Stock Exchange, which lists it as TLM.
Written by Editorial Staff, Email: email@example.com