According to DealStreet Asia, Indosat Ooredoo is working with JP Morgan as the sell-side advisor in the process. The $300 million valuation is as a result of the average value of around $100,000-200,000 for each tower. However, the estimate for each tower will vary depending on its location and tenancy, amongst other aspects.
Though still unnamed, the company has started to receive interest from potential buyers, both foreign and local, having yet entered the second stage of negotiations.
Turina Farouk, SVP of corporate communications at Indosat Ooredoo, declined to comment on the development but she added that the company has “some options to maximise its business value in the long term”.
Indosat is looking to make the sale in order to raise funds for a $2 billion capital expenditure investment over the next three years. The company plans to invest in the expansion of its 4G network across the country, adding an additional 18,000 4G base stations by the end of 2019.
According to TowerXchange, an open community for thought leaders in the global tower industry, this is not the first tower sale for Indosat. Back in 2012, the company divested 2,500 of its sites to Tower Bersama for a reported $519 million, which at the time "released capital to invest in 3G rollout," said Arianna Neri, managing director for TowerXchange - Americas and Asia.
I can add that this is not the first tower sale for Indosat, following the divestment back in 2012 of 2,500 sites to Tower Bersama (for US$519mn) - which at the time I believe released capital to invest in 3G rollout.
Earlier this year, Indosat Ooredoo was one of six consortium members of the new Indigo West and Indigo Central subsea cables – that became RFS. The new 9,200km system will offer connectivity between Australia and Singapore, and will feature new spectrum-sharing technology enabling each member to upgrade their networks and make capacity increases on-demand.
“We are excited with the significant progress of the Indigo deployment, commented Joy Wahjudi, president, director and CEO of Indosat Ooredoo at the time of launch. “This strategic partnership will provide Indonesia with wider connection access across Australia and the fast-growing South East Asian market.”
