TBIG signs an agreement with Indosat for the purchase of 2,500 towers
JAKARTA, 8 February 2012 – PT Tower Bersama Infrastructure Tbk. (“TBIG” or the “Company”) today announces that it has signed an agreement with PT Indosat Tbk (“Indosat”) for the purchase of 2,500 tower assets and lease of certain site space to Indosat, for up-front consideration of US$406 million and a maximum potential earn-out amount of US$113 million. The upfront consideration will comprise cash as well as newly issued TBIG shares. The share consideration will be based on trailing market prices over a period prior to closing and will represent approximately 5% of TBIG’s enlarged share capital. Under the terms of the agreement, Indosat will lease all 2,500 towers, as an anchor tenant, from TBIG for a minimum period of 10 years. The transaction consideration will be financed by the Company through bank debt, the subscription amount from the new shares to be issued to Indosat and internally generated funding.
Commenting on the transaction, Hardi Wijaya Liong, TBIG’s Chief Executive Officer, said: “We are very pleased to have signed this transaction which is part of TBIG’s growth strategy of complementing its core organic growth through the acquisition of high-quality tower portfolios. Indosat is a leading telecommunication and information service provider in Indonesia, and we look forward to working with them over the long term.”
“At the same time, we would like to thank our dedicated staff, customers, and partners for the excellent pace of organic growth we have achieved over the last financial year. As of 1 January 2011, TBIG had 3,104 sites and 4,729 tenancies. We ended 2011 with 4,868 sites and 7,002 tenancies, which represent increases of 57% and 48% in the number of sites and tenancies, respectively. The great majority of these increases were from organic growth. In Q4 2011 alone, we added 360 sites and 593 tenancies organically, clearly demonstrating our continuing commitment to build-to-suit sites and collocations. Taken on a proforma basis, this latest acquisition of 2,500 tower assets (which includes Indosat and third party tenancies) takes TBIG to 7,368 sites and more than 10,000 tenancies, immediately resulting in higher revenue and EBITDA, and benefits from even better economies of scale”, Hardi added.
The completion of the transaction is subject to various approvals including those of TBIG’s shareholders and Indosat’s bondholders and lenders. The transaction is expected to be completed during Q2 2012.
About PT Tower Bersama Infrastructure Tbk:
PT Tower Bersama Infrastructure Tbk. is a provider of telecommunications infrastructure for the placement of BTS by telecommunications operators in Indonesia. As of 31 December 2011, TBIG owned and operated 4,868 telecommunication sites serving 7,002 tenants and these continue to grow in line with the high demand from telecommunications operators. TBIG is a company publicly listed on the Indonesia Stock Exchange and is majority owned by Saratoga Group and Provident Capital.
For further information please contact:
Corporate Secretary:
Helmy Yusman Santoso
Phone: (62-21) 571 1946
Email: corporate.secretary@tower-bersama.com
Investor Relations:
Email: investor.relations@tower-bersama.com
