Indonesia’s third largest telecom-tower operator in terms of towers owned, PT Solusi Tunas Pratama (STP), has abandoned a planned sale of shares that it thought would have raised up to USD300 million, citing ‘weak market conditions’ as the reason. STP, part-owned by the private equity firm Carlyle Group, recently tested the water for a sale of shares, last month setting a price range of between IDR10,000 and IDR12,500 (USD0.80 and USD0.95) per share – according to the Wall Street Journal (WSJ), citing people claiming knowledge of the matter.
In a filing with the local bourse, however, STP confirmed its decision to postpone the sale process, noting: ‘We are informed that, after considering the current adverse market conditions, at this stage the selling shareholders have decided not to proceed with the offering. The selling shareholders and their advisers will continue to monitor the market conditions and if they intend to commence the offering in the future.’
As at 31 December 2014, STP owned 6,651 towers and total tenancies of 10,521 in Indonesia, after it bought 3,500 towers from mobile operator XL Axiata last year in an all-cash deal worth IDR5.6 trillion.