Indonesian telecom tower company PT Dayamitra Telekomunikasi (Mitratel) on Friday announced that it will acquire Telkomsel’s 6,050 tower assets worth Rp10.3 trillion ($700 million), according to a disclosure statement on Indonesia Stock Exchange (IDX).
Both parties – who are subsidiaries of state telecom operator PT Telekomunikasi Indonesia Tbk – have entered into a conditional sale and purchase agreement to the effect.
Following the completion of the deal, Mitratel’s total tower capacity would be over 22,000.
“The transfer of these towers will strengthen Mitratel’s core business and increase its value, as well as help achieve its long-term plans. In the future, Telkomsel will focus on its core business as the leading digital telecom company in Indonesia by creating a digital ecosystem and providing the best digital connectivity experience for Telkomsel’s customers. This transaction is part of Telkom’s business portfolio structuring to ensure optimal value for shareholders,” according to the statement.
Mitratel CEO Theodorus Ardi Hartoko said, in a company release, the telecom tower business is still promising as operators expand network quality and service range. He added the tower business will continue to record positive performance in the future given the developments related to 5G technology in Indonesia.
We had recently reported on Telkom’s plans to consolidate its tower operation business under its subsidiary Mitratel. The restructuring exercise was aimed to strengthen the state-owned tower company before Mitratel makes a public market debut eventually.