In a bid to expand its operations, Indonesia-based property firm Urban Jakarta Propertindo (UJP) is in talks to acquire a local company, which has around six-hectares of land in East Jakarta area. On the other hand, the country’s telecommunication company XL Axiata is the process of reviewing a plan to sell its 4,500 telecom tower assets. In a separate development, Malaysia’s listed offshore oilfield services provider Bumi Armada Bhd is selling its non-utilised FPSO vessel Armada Perdana FPSO.
Urban Jakarta in talks to acquire local peer
Listed property company in Indonesia Urban Jakarta Propertindo (UJP) is in talks to acquire a local company, which has around six-hectares of land in East Jakarta area, corporate secretary Tri Rachman Batara said.
Negotiations are going on and the deal, if fructifies, is expected to close by early 2020, according to a report by Bisnis Indonesia.
To facilitate the transaction, UJP will be using a part of the funds that it had raised in December 2018 via its IPO. Of the total amount of 423.18 billion rupiah raised last year, as much as 330.33 billion rupiah ($23.46 million) is currently remaining.
Besides this acquisition, UJP is also planning a commercial high-rise residential project, which is valued at 500 billion rupiah.
XL Axiata plans to sell 4,500 telecom tower assets
Indonesia’s listed telecommunication company XL Axiata is in the process of reviewing a plan to sell its 4,500 telecom tower assets, said finance director Mohamed Adlan. An official process is yet to begin.
Considering only a few months are left in 2019, XL Axiata may not conduct the sale process this year, said a report by Investor Daily.
However, the company is seriously mulling over an impending sale as it does not consider telecom towers as strategic assets.
Earlier in 2014, XL Axiata sold as many as 3,500 telecom towers to local tower company Solusi Tunas Pratama, which was followed by the sale of another 2,500 telecom towers to Sarana Menara Nusantara.
Bumi Armada sells FPSO unit for $40m
Malaysia’s listed offshore oilfield services provider Bumi Armada Bhd is selling its non-utilised floating production storage and offloading (FPSO) vessel Armada Perdana FPSO for $40 million, according to a stock exchange filing.
Armada Oyo Limited (AOL), the wholly-owned subsidiary of Bumi Armada and the owner of Armada Perdana FPSO, has signed an agreement with Nigeria-based oil and gas services company Century Energy Services (CESL) for the sale plan. Following the transaction, CESL will redeploy Armada Perdana’s vessel to another field in Nigeria.
So far, CESL has paid $5.5 million to AOL for the FPSO acquisition. Further, the Nigerian company will pay another $5 million within six months of the delivery date or when oil is produced by the vessel. Meanwhile, the remaining $17.9 million will be paid within two years from the first date of oil production.
Besides selling FPSO, Bumi Armada is also looking for buyers for its 39 offshore support vessels (OSV), as reported by The Edge.