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Indonesia’s Protelindo to acquire 2,500 towers; deal to close by 30 June.
Indonesia’s XL Axiata on Tuesday announced that Protelindo has won an auction to acquire 2,500 of its cell towers with a cash bid of 3.57 trillion rupiah (€238.81 million).
XL and Protelindo – Indonesia’s largest independent towers company – have also entered into a master tower lease agreement whereby XL will be the anchor tenant on 2,432 towers for the next 10 years.
"XL has a longstanding relationship with Protelindo and is pleased to continue our partnership with them for the long term. This transaction also demonstrates XL’s strength and discipline in executing strategic transactions to achieve our objectives," said Dian Siswarini, president director of XL, in a statement.
XL will use the proceeds to "further optimise its balance sheet," she added.
For Protelindo, Tuesday’s deal increases its footprint to nearly 15,000 cell towers.
"This transaction is a clear win-win for both our companies. Protelindo can utilise its balance sheet capability to purchase the towers and XL can monetise its assets for a fair price," said Aming Santoso, president director of Protelindo.
The deal is expected to close by 30 June.
Bidding for the towers began in January, with local news outlets reporting that XL had received several formal and informal offers.
Tuesday’s deal is XL’s second major towers sale in recent years.
In 2014, the operator, which serves 41.9 million customers, agreed to sell 3,500 towers to Solusi Tuna Pratama for IDR5.6 trillion.
