JAKARTA (TheInsiderStories) – Telecommunication tower leasing provider, PT Dayamitra Telekomunikasi (Mitratel) considered to list its shares at Indonesia Stock Exchange, said the deputy minister of state own enterprises (SOEs), Kartika Wirjoatmodjo, in one seminar. No further detail on the target of initial public offering (IPO) time.
The unit of state-owned telco operator, PT Telkom Indonesia Tbk (IDX: TLKM), is engaged in providing telecommunications infrastructure and started to enter the telecommunication tower business since 2008. The company has managed more than 16,000 telecommunication towers spread throughout Indonesia.
Wirjoatmodjo explained that the IPO and strategic partnerships would indeed be an important part of the business plans of the SOEs. This step was taken as part of the ministry program to increase a value creations and to become a locomotive economy for the country, he adds.
“In the future, we will also carry out an IPO and strategic partnership in the various existing clusters. For example, in Pertamina its an upstream holding. In Telkom there is Mitratel. There will be an IPO,” said the deputy minister.
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).
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 Indosat. The unit of Qatari Ooredoo to lease 369 plots of land owns by Mitratel for 10 years. This transaction is done through a master land lease agreement.
According to Mitratel‘ CEO, Herlan Wijanarko, the acquisition of Indosat towers would strengthen business fundamentals and create added value for the provider significantly. While, Telkom’ director, Edwin Aristiawan added, the corporate action carried out by the group was one of the business strategies to improve capabilities in the aspect of telecommunications infrastructure.
He said, the tower owned by Indosat has a tenancy ratio above the industry average with a sturdy structure and coverage throughout Indonesia. Aristiawan revealed that the telecommunications tower business is still promising.
Mitratel is a subsidiary of Telkom which is engaged in providing telecommunications infrastructure and has managed more than 13,700 telecommunication towers spread across various regions and serving all cellular operators in Indonesia. The acquisition supports TelkomGroup’ steps through its unit to become the dominant player in the tower industry in Indonesia.
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