JAKARTA (TheInsiderStories) - PT Telkom Indonesia Tbk (IDX: TLKM) plans to merge all the group’ towers under the unit, PT Dayamitra Telekomunikasi (Mitratel), before conducts an initial public offering (IPO) or other corporate actions, the company said yesterday. After transferred all its tower to the subsidiary. other unit PT Telekomunikasi Selular (Telkomsel) also do the same way.
The state-owned telecommunication firm, plans to consolidate around 5,000 - 6,000 towers under Telkomsel into Mitratel. The investor relations, Andi Setiawan. Currently the group has 34,025 telecommunication towers, which are 18,000 owned by Telkomsel and the remaining owned by Mitratel.
As for the industry, Mitratel is the second largest tower company in terms of number of towers. This is expected to sustain the operator’ value when taking the floor on the stock exchange and forging strategic partnerships.
Earlier the deputy minister of state own enterprises (SOEs), Kartika Wirjoatmodjo, said Telkom was considered to list the unit shares at Indonesia Stock Exchange. But, no further detail on the target of the IPO time. He 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.
US$1: Rp14,800
Written by Editorial Staff, Email: theinsiderstories@gmail.com
