<article>Telecommunication provider <a style="color: #000080;" href="http://www.xl.co.id/" target="_blank">PT XL Axiata Tbk (EXCL)</a> has closed an agreement to sell 2,500 units of its telco towers for Rp 3.57 trillion ($267.2 million) to <a style="color: #000080;" href="http://www.ptsmn.co.id/" target="_blank">PT Profesional Telekomunikasi Indonesia (Protelindo)</a>.</article>

Telecommunication provider <a style="color: #000080;" href="http://www.xl.co.id/" target="_blank">PT XL Axiata Tbk (EXCL)</a> has closed an agreement to sell 2,500 units of its telco towers for Rp 3.57 trillion ($267.2 million) to <a style="color: #000080;" href="http://www.ptsmn.co.id/" target="_blank">PT Profesional Telekomunikasi Indonesia (Protelindo)</a>.
According to the agreement, Protelindo, which is also a unit of publicly listed <a style="color: #000080;" href="http://www.ptsmn.co.id/" target="_blank">PT Sarana Menara Nusantara Tbk (TOWR)</a>, will rent out about 2,433 tower units back to XL for a period of ten years. XL will then get a competitive price, which will allow the company to significantly cut operational cost.
“The transaction is part of our strategy to gain more flexibility in terms of assets. We have a very good relationship with Protelindo and appreciates the opportunity to optimize this partnership for the long-haul,” said Dian Siswarini, president director of XL in Jakarta recently.
XL will use the funds to repay some of its rupiah debts. Until 2022, the company’s total debts is recorded at almost Rp 30 trillion ($2.2 billion), making it one of the most indebted of Indonesia’s telecom companies.
As part of efforts to reduce debts, XL is also planning to raise Rp 8.6 trillion ($652.6 million) from a rights offering. It will sell 2.76 billion in a pre-emptive rights issue or 24.35 per cent of enlarged capital.
Under the rights issue scheme, each holder of 100 Shares is entitled to 25 rights. Holders of the rights can exercise it to  purchase one  new common  share  at the  rights offering price of Rp 3,150 per rights share, or choose to trade their rights between May 20-26, 2016.
Funds raised from the offering will be used to repay the $500 million shareholder loan extended by its Malaysian parent.
<h3 style="text-align: justify;">4G expansion</h3>
The firm has allocated Rp 7 trillion (US$526.3 million) this year to build 4G infrastructure, including building new towers, upgrading existing ones and improving IT systems.
By the end of the year, the company aims to upgrade the network in 100 cities. As of June, 58 cities have seen upgrades to 4G.
XL Axiata, a subsidiary of Malaysian-based Axiata Group Berhad, currently serves over 42 million customers, with 56 per cent of them accessing data services. Of around 23.8 million data users, only 5 million use 4G and the rest still stick to 3G and 2G. Data subscriptions contribute to 37 per cent of the company’s revenue.
In the first quarter this year, the firm booked Rp 5.6 trillion in revenue, a 3.7 per cent increase from the Rp 5.4 trillion it collected during the corresponding period last year. It also saw its profits jump to Rp 169 billion after making Rp 758 billion in losses during the same quarter last year.
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Indonesia’s XL closes $267m telco towers sale deal 

Indonesia’s XL closes $267m telco towers sale deal

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