JAKARTA (TheInsiderStories) – Indonesian tower provider, PT Sarana Menara Nusantara Tbk (IDX: TOWR) stock occurred in the negotiating market on Thursday (09/12) with total value of Rp458.7 billion or US$32.53 million, quoted from RTI data. There is no further explanation for the crossing transaction.
Previously, there is a report, that the company interested to acquire 3,000 towers owned by PT Indosat Ooredoo Tbk (IDX: ISAT). Adam Ghifari, deputy director of Sarana Menara explained that there are still many funding schemes that can be carried out by this company in the context of the inorganic growth.
The crossing transactions in the market negotiation held nine times in two stages. The first stage was carried out by PT Bahana Sekuritas with a transaction value of 27,000 lots or 2.7 million shares at Rp650 and Rp645 A share with total amount of Rp1.75 billion.
Then the second stage of the transaction was carried out seven times at a price of Rp620 per share. The transaction was 7.37 million lots or 737 million shares of Sarana Menara with value of Rp456.9 billion.
Brokers involved in buying transactions include PT UOB Kay Hian, PT BCA Sekuritas, PT JP Morgan Securities Indonesia, and PT DBS Vickers Securities Indonesia. In this transactions, only one broker selling the shares PT JP Morgan Securities Indonesia.
Commenting on the transaction, Gifari said he did not acknowledge who carried out this transaction and did not know about the transaction. But he assured that Sarana Menara wants to expand the businesses through organic and in-organic growth.
As of June 2019, the total new TOWR business that has been completed reached 1,900 tower leases and fiber optic leases reached 14,500 kilometers. In addition, there are still orders that have been received and will be completed during the second semester of 1,000 tower leases.
In the first half of this year, Sarana Menara already had 29,150 tower leases alias tower rental points and 14,500 kilometers of fiber that were completed. Giffari stated, “We will reach more than 30,000 tower lease points and 31000 km fiber optic leases.”
He added, the development of telecommunications infrastructure in the form of towers and optical fiber continues to be encouraged to increase tenancy ratio. He also optimistic that the company tenancy ratio will increase until the end of 2019.
Last year, the operator has completed the acquisition of 100 percent of PT Komet Infra Nusantara (KIN) from PT Nusantara Infrastructure (IDX: META). PT Profesional Telekomunikasi Indonesia (Protelindo), other company owned by Djarum, manage the towers.
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 Telkom Selular (Telkomsel), PT XL Axiata Tbk (IDX: EXCL) and Indosat.
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.
Observes rated, telecom industry EBITDA will grow at mid-single-digit rates, underpinning the continuing rational competition in the Java region and gradual data monetization. The operator’ spending is likely to be higher in 2018 and 2019, as telecom operators invest to meet rising demand for LTE services.
Meanwhile, there will be a strong fixed segment momentum for cable and fibre broadband services, propelled by a broadband network target of achieving 71 percent of urban households at 20Mbps by 2019, from around 10 percent.
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