Tower firm STP to take BTel stake as part of debt agreement

1 Jun 2015

Indonesian publicly listed tower operator Solusi Tunas Pratama (STP) will reportedly take an equity stake in the country’s beleaguered CDMA service provider Bakrie Telecom (BTel), as part of the latter’s debt settlement with its creditors. The Jakarta Post cites STP finance director Juliawati Gunawan as saying that BTel is expected to give up part of its stake to the tower firm ‘as required in a debt postponement petition (i.e. PKPU)’ filed in November last year. Under the Central Jakarta Commercial Court’s ruling on the PKPU concerning BTel’s debt restructuring, the telco reached agreements with its creditors for the debt-to-equity swap, and whilst the precise details of the deal and size of the stake have not been divulged, Ms Juliawati said: ‘Based on the PKPU, BTel will pay 30% of its debts by cash in a five-year period and the remaining 70% by convertible bonds to be exchanged with its stake.’ Further, it is thought that STP may receive up to IDR406.02 billion (USD30.7 million) from BTel, the amount having been included as a ‘non-current financial asset’ in STP’s latest financial report.

BTel is part of the politically connected Bakrie Group and is labouring under total debts of IDR1.3 trillion owed to a number of tower companies, including STP. Under the PKPU, BTel is also expected to cede partial ownership to two other tower companies, Tower Bersama Infrastructure and Profesional Telekomunikasi Indonesia (Protelindo), which is a subsidiary of Sarana Menara Nusantara.

Indonesia, Bakrie Telecom (BTel)