PT Telkom picks Barclays to facilitate USD500m Mitratel sale

5 Aug 2013

PT Telekomunikasi Indonesia (PT Telkom) has selected Barclays Capital to help it find a buyer for its 49% stake in tower unit Dayamitra Telekomunikasi (Mitratel), and hopes to raise USD500 million through a sale. TMT Finance cites an unnamed banker as saying that at least two rival tower companies – Tower Bersama Infrastructure and Protelindo – have already submitted first round bids for the asset, with a deal expected to be completed later this year. Mitratel is valued at between twelve to 14 times EBITDA (or up to USD1 billion), equating to roughly USD450 million to USD500 million for Telkom’s 49% holding. As reported previously by TeleGeography’s CommsUpdate, Telkom is weighing up three options: the spin-off of Mitratel as a separate company via an initial public offering (IPO); a sale to another publicly listed tower operator; and a fully-fledged merger with a rival tower firm. Barclays Capital is believed to have invited several other listed tower operators — Sarana Menara Nusantara, Tunas Solutions Pratama, and Inti Build Sejahtera — to enter discussions over a possible tie-up.

Indonesia, Telkom Indonesia