Tower Bersama approves USD406m acquisition of 2,500 Indosat towers

26 Apr 2012

Dow Jones Newswires writes that shareholders of Indonesian telecoms infrastructure company PT Tower Bersama have approved a plan to purchase 2,500 mobile towers from the country’s second largest operator, PT Indosat, for USD406 million. In a meeting in Jakarta, the firm’s backers approved a cash deal worth USD334 million, with the remainder to be paid through the issuance of 5% in new shares to Indosat for IDR661.23 million (USD72 million). The president of Tower Bersama Herman Setya Budi told reporters that the company will be using USD9 million of its own funds for the cash portion of the deal, while USD325 million will come via a five-year loan from a consortium of eleven lenders – including United Overseas Bank, Oversea-Chinese Banking Corp, DBS Bank and HSBC Holdings. Budi expects the deal to be concluded in May, at which point he says his firm will consider the purchase of an additional 1,500 towers from Indosat.

Indonesia, Indosat Ooredoo (incl. IM2)