Singtel-linked PT Telekomunikasi Selular (Telkomsel) is selling 4,000 telecommunication towers to PT Dayamitra Telekomunikasi for IDR6.2 trillion ($580 million).
Singtel owns a 35% stake in Telkomsel, a leading Indonesian mobile operator.
As part of the transaction, Telkomsel will sign a ten-year lease with Mitratel to use the tower space.
“The transaction will allow Telkomsel to optimise its capital structure as Telkomsel focuses on its core business of providing digital connectivity services to customers in Indonesia,” says Singtel.
More mobile operators around the world are on board this trend of going asset light by hiving off their infrastructure such as telecom towers and booking a one-off gain which they can reinvest elsewhere.
The owners of the towers, meanwhile, enjoy steady, long term cash flow by renting the space back to the operators.
With the addition of these 4,000 towers, Mitratel will now own more than 28,000 towers across Indonesia.
“Mitratel also welcomes further transactions with any party as long as the transaction would benefit both parties and bring value creation for stakeholders,” the company notes.
Singtel closed Sept 2 at $2.37, up 0.85% for the day and 2.6% year to date. The Edge Singapore