Home News Indonesia’s XL Axiata Sold Towers US$296M to Pay Debts

Indonesia’s XL Axiata Sold Towers US$296M to Pay Debts

PT XL Axiata Tbk (IDX: EXCL), sold 2,782 towers with total valued Rp4.05 trillion ($289.28 million) to Protelindo and CMI - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesia’ telecommunication operator, PT XL Axiata Tbk (IDX: EXCL), sold 2,782 towers with total valued Rp4.05 trillion ($289.28 million) to two local tower operators. The company will uses the funds to cut the debt.

The signing of the sale and purchase agreement was carried out on Feb. 7, through the e-auction process was carried out on Jan. 31. It said, XL Axiata will lease back 2,763 units that was sold to two operators for a 10 years period. After the transaction, the operator still owned around 1,600 towers.

The provider said, PT Profesional Telekomunikasi Indonesia (Protelindo), unit of an investment company, PT Sarana Menara Nusantara Tbk (IDX: TOWR), has won 1,728 towers and private firm, PT Centratama Menara Indonesia acquired 1,050 units. The deals also include leasing land owned by XL Axiata.

“After the completion of this transaction, we will be able to focus more on our core business in providing cellular and mobile data services, especially in improving the quality of service to customers and the public,” said President Director & CEO of XL Axiata, Dian Siswarini, in a written statement yesterday (02/11).

She adds, “We are also optimistic this transaction will have a positive impact on optimizing the effectiveness of operational costs as well as the costs of supporting facilities and infrastructure.” 

This transaction will also be able to support XL Axiata to strengthening its’ capital structure, said Siswarini. She continued, the tender of towers sale has begun since Nov. 5, 2019. The tender was attended by almost all telecommunication tower leasing companies operating in Indonesia.

Currently, 66.5 percent shares of the publicly listed company owned by Malaysia-based Axiata Group. The provider began seeking buyers for its 4,400 towers in September 2019 in an effort to reduce debt and raise funds for network investment.

In 2014, the operator had sold 3,500 towers to PT Solusi Tunas Pratama Tbk (IDX: SUPR) for Rp5.6 trillion and in 2017 unloaded 2,500 towers to Portland for Rp3.6 trillion.

Earlier, Protelindo has acquired par 1,000 unit of PT Indosat Ooredoo Tbk (IDX: ISAT) towers together with PT Dayamitra Telekomunikasi (Mitratel), unit of state-owned telecommunication provider, PT Telkom Indonesia Tbk (IDX: TLKM) 2,100 towers. The sales value worth of Rp6.39 trillion.

The completion of the transaction its expecting before the end of 2019. After the transaction will have completed, Indosat, Mitratel and Protelindo will sign a master tower lease agreement. The new owners agreed to lease back the tower to the unit of Qatar’ Ooredoo Group.

Indosat to lease 178 plots of land owned by Protelindo and 369 plots of land owns by Mitratel. The tenancy period is also valid for 10 years. This transaction is done through a master land lease agreement.

Written by Staff Editor, Email: theinsiderstories@gmail.com