Indonesia’s XL Axiata sells tower assets to trim debts

14 Feb 2020

Indonesian mobile network operator (MNO) XL Axiata, a 66.5%-owned subsidiary of Malaysia-based Axiata Group, has divested tower assets worth IDR4.05 trillion (USD296 million) to local towercos Profesional Telekomunikasi Indonesia (Protelindo) and Centratama Menara Indonesia (CMI), to help lower debt. Under the first deal, Protelindo will take on 1,728 of XL’s towers while, separately, CMI acquired 1,050. Both transactions include the provision for the towercos to lease land owned by the MNO. The move follows an announcement from XL Axiata in September 2019 in which it confirmed its intention to seek buyers for a portion of its 4,400-strong tower network to trim debt and raise funds for future investment.

Indonesia, XL Axiata