JAKARTA (TheInsiderStories) – Djarum Group telco tower operator, PT Sarana Menara Nusantara Tbk (IDX: TOWR) has bought of up to 2.1 percent of the the outstanding shares, the management announced today. The company has spent Rp1 trillion (US$71 million) for the buyback shares program.
Deputy director of the issuer, Adam Ghifari, said the telco firm still has the blessing to continue the share buyback program until November 2021 up to 5 percent. In 2020, the operator spent the same amount for organic growth and spent Rp2.5 trillion to acquire 1,399 towers of cellular operator, PT XL Axiata Tbk (IDX: EXCL) through its subsidiary, PT Profesional Telekomunikasi Indonesia.
Beside run the buyback program, in this year, Sarana Menara allocates capital expenditure Rp3.25 trillion. Most of the funds will be used to develop tower and for non tower businesses, such as fiber and connectivity. He asserted, the amount of the capital spending could be greater than the initial allocation if demand from customers rising.
The provider also prepared funds for inorganic expansion, like purchasing assets of other telco companies. In terms of performance, the company is targeting the revenues growth 8 percent compared to last year. In 2020, the management has set the revenues target to growth around 15 percent compared to 2019 or around Rp7.4 trillion.
During the first nine months of last year, the revenues of Sarana Menara grew 19.3 percent from Rp4.65 trillion to Rp5.55 trillion. The net profit also rose 19.50 percent to Rp1.90 trillion from a year ago Rp1.59 trillion.
As of Sept. 30, the operator have 38,615 tenants occupying, 21,373 towers, and 39,771 kilometers of fiber optic connections. Its tower tenancy ratio recorded 1.81 times from previous year 1.67 times. 90 percent of Indonesians access the internet via handheld devices so that the need for cellular infrastructure can still grow.
In 2019, the operator also completed the acquisition 100 percent of PT Komet Infra Nusantara (KIN) from PT Nusantara Infrastructure (IDX: META) and managed by Protelindo. Based on the sale and purchase agreement signed on March 23, 2018, META’ unit PT Telekom Infranusantara sold its 1.31 billion shares in KIN around Rp1.40 trillion.
Through this acquisition, Sarana Menara gets additional 1,400 towers spread across North Sumatra, Riau, Batam, most of Java and Bali. In addition, KIN also operates fiber optic cable network especially in Surabaya, Batam and Medan. This year, KIN’ sales is estimated to reach Rp325 billion with approximately 70 percent of revenues coming from PT Telekomunikasi Selular, XL Axiata and PT Indosat Ooredoo Tbk (IDX: ISAT).
Protelindo owns and operates over 14,500 towers in Indonesia. Its unit was established in January 2003 and has become the largest independent owner and operator of towers for wireless operators in Indonesia. The company’ primary business is leasing space at its multi-tenant tower for all major wireless operators in Indonesia under long-term lease agreements.
Currently, the shareholders of the tower manager are PT Sapta Adhikari Investama 52.03 percent, public 45.86 percent, and in the form of treasury shares 2.11 percent.
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