Indonesia's Axis Telekom considers USD300m towers sale

14 Dec 2012

Reuters reports that mobile network operator PT Axis Telekom Indonesia, which is controlled by Saudi Telecom Company (STC), is planning to sell 1,600 telecommunication towers worth around USD300 million. According to three unnamed sources who are said to have ‘direct knowledge of the matter’, Axis is in talks with two bidding groups over a possible deal, namely PT Tower Bersama Infrastructure and PT Sarana Menara Nusantara. ‘The discussion is ongoing and it is expected the transaction will be completed by the first half of next year,’ said one source, who wished to remain anonymous due to the confidential nature of the discussions underway. It is understood that proceeds from any deal would be used to refinance debt and to provide investment. Tower Bersama declined to comment on the rumour, while the other two parties involved could not be reached. Axis Indonesia launched commercial mobile services in the country in 2008 and has garnered around 16 million customers to its voice and internet data services – making it a relatively small player when compared to the market leader PT Telkomsel, which has 110 million customers.