Axiata Jakarta XL Axis Capital Group Telekom Indonesia-Axiata unit to sell 3,500 towers to Solusi Tunas in RM1.5bil deal
PETALING JAYA: Axiata Group Bhd’s Indonesian unit, PT XL Axiata Tbk, has picked PT Solusi Tunas Pratama Tbk (STP) over 14 others to sell a portion of its towers in a deal worth US$460mil (RM1.5bil), or 5.6 trillion rupiah, cash.
XL Axiata is selling 3,500 of its 8,000 towers in a deal signed yesterday. There are no immediate plans to sell more towers, however.
“We have not taken any decision with regard to the remaining towers,” XL Axiata vice-president of corporate communications Turina Farouk said from Jakarta in replies to queries from StarBiz. Earlier, XL Axiata had been contemplating a flotation exercise of its tower business, but later opted to sell a portion of the towers to raise cash to pare down debts that had increased after it bought PT Axis Telekom Indonesia in March for US$865mil (RM2.82bil).
Sources said that of the 15 interested bidders for the towers, only STP was prepared to see through the process.
The others were not comfortable with the terms of the bidding process. “All the main players were not comfortable with the terms of the bid ... some may question why the bid was not aborted since there was only one serious bidder,” said an industry player. Turina said they had a process where the bidders had been short-listed from more than 15. “The process was designed to enable only serious bidders to conduct detailed due diligence and put in the bids. We cannot comment on the process details, as there are confidentiality clauses,” she said, adding that “STP was the highest bidder”.
She, however, declined to name the 15 bidders. Earlier reports said they included PT Tower Bersama Infrastructure Tbk, PT Sarana Menara Nusantara Tbk, PT Inti Bangun Sejahtera Tbk, PT Nusantara Infrastructure Tbk and PT Centratama Telekomunikasi Indonesia Tbk. PT Nusantara is controlled by Indonesian billionaire Peter Sondakh, who is said to be...
Please join StudyMode to read the full document