Carlyle-backed Indonesian Firm plans to raise up to $400m via share sale

Visual from company website

Indonesia’s listed telecommunications tower operator PT Solusi Tunas Pratama, partly owned by private-equity firm Carlyle Group, plans to raise up to $400 million by selling share to institutional and retail investors, a report said, citing people aware of the developments.

“Solusi Tunas will increase the outstanding shares on the stock exchange by offering shares to institutional and retail investors. The sale of shares is likely to take place in the second quarter of this year,” the Wall Street Journal said in a recent report.

Currently, most of the stock is owned by the US private equity firm Carlyle Group. The stake sale is yet another instance of PE firms looking to book profits amid the strengthening of exchanges of Southeast Asia.

This year, the stock price index in the Indonesia Stock Exchange (IDX) has increased by 4 per cent, while Solusi Tunas shares increased 28 per cent over the same period.

The corporate action in the Southeast Asian market looks more intense this year, after a cool-calm at the beginning of the year. However, investors are still relatively weak, considered the uncertain global conditions.

The raising funds in the equity markets of Southeast Asia has reached $ 4,6 billion this year or an increase of 28 per cent year over year, according to data from Dealogic. However, most of this amount came from the telecommunications company IPO Jasmine Broadband Infrastructure Fund Growth in Thailand. Listing valued at $ 1,7 billion, which still the largest in Southeast Asia in 2015.

Also read:  Thailand SEC approves $1.7b JAS Infra fund

Solusi Tunas is the third largest telecommunications tower operator in Indonesia. It has nearly 6000 towers, including 3.500 new tower of PT XL Axiata Tbk purchased last year. Carlyle invested around $100 million in October 2012.

Over the past year, Solusi Tunas posted the revenue of Rp 1,07 trillion, or $ 81,6 million, up to 27,59 per cent compared to 2013. However, the company booked a net loss of Rp 373,93 billion, equal to $ 28,98 million last year, compared to 2013, which posted a net profit of Rp 197,59 billion.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.