JAKARTA (TheInsiderStories) – Indonesian tower provider, PT Tower Bersama Infrastructure Tbk (IDX: TBIG) has acquired 51 percent shares of local telecommunication infrastructure services PT Visi Telekomunikasi Infrastruktur Tbk (IDX: GOLD).
Based on the disclosure information on Tuesday (12/18), the company purchased Rp35.45 billion (US$2.44 million) for the acquisition program and the transfer process was completed on Dec. 17, 2018.
TBIG bought 51 percent of GOLD’s shares from PT Amanda Cipta Persada, PT Mulia Sukses Mandiri, PT Scavino Ventures Ltd, PT Current Distrindo and PT Sukses Prima Sakti.
It said, the purpose of the acquisition of shares is to expand the company’s business network and strengthen the company’s business in the field of telecommunications infrastructure services.
TBIG is a telecommunications tower company with the second largest portfolio in the country, reaching 14,391 towers as of September 2018.
The publicly listed company owned by PT Saratoga Investama Sedaya Tbk (IDX: SRTG) also absorbed 19.79 percent of the shares of PT Gihon Telekomunikasi Indonesia Tbk (IDX: GHON) in second quarter of 2018.
Based on GOLD data, the company has 305 towers as of the end of September 2018. The operator established and operates towers and micro cell poles for leasing to telecommunications companies with long-term lease agreements. The current operational covers Java, Bali and Sumatra.
The swift conclusion of Indonesia’s 2100MHz and 2300MHz spectrum auctions is likely to provide greater clarity for both the telecommunications and tower sectors, says Fitch Ratings.
The removal of the uncertainty which had surrounded the spectrum auctions means that mobile operators will now be intensifying 4G network expansion rather than just pursuing upgrades of existing network infrastructure.
However, operators would first need to re-farming their 2100MHz spectrum to enable contiguous spectrum allocations for more efficient use of spectrum resources.
Fitch expect the 2100MHz and 2300MHz frequencies to be deployed for 4G services as operators strive to increase network capacity in areas of high population density, while the lower frequencies may eventually be re-assigned to improve coverage outside the Java region.
“We expect independent tower companies PT Tower Bersama Infrastructure (TBIG, BB-/Stable) and PT Profesional Telekomunikasi Indonesia to benefit from any accelerated capex expansion by their largest tower tenants – Telkomsel and Hutch, respectively,” Fitch said.
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