Indosat looking at tower asset sale or spin-off

27 Feb 2014

The Indonesian cellular operator Indosat is considering spinning off or selling its mobile network towers next year as it looks to concentrate on service provision. According to a report from Reuters, Indosat CEO Alexander Rusli has labelled the tower network as a ‘distraction’ and says it is not considered to be a ‘core business’. The firm currently owns around 8,000 towers across the country, having already sold off 2,500 towers for USD406 million to PT Tower Bersama Infrastructure in 2012. Indosat has not yet decided on whether the tower assets will be spun off and operated by a separated company or whether it will divest them altogether under a ‘sale and leaseback’ arrangement.

Indonesia, Indosat Ooredoo (incl. IM2)