PT Tower Bersama Infrastructure, an Indonesian mobile-phone infrastructure provider, agreed to buy some cellular towers of the country’s largest wireless carrier, PT Indosat, to expand the business.
An exclusive, non-binding agreement was signed today between the two companies, Tower Bersama said in an e-mailed statement without providing details of the transaction. Jakarta- based Indosat was planning to sell about 3,000 towers in a deal that may be worth as much as $500 million, two people with knowledge of the matter told Bloomberg News earlier today.
The transaction will provide Tower Bersama additional assets to expand in Southeast Asia’s biggest economy while Indosat will get more cash that may help provide more services, said Chandra S. Pasaribu, an analyst at PT Danareksa Sekuritas in Jakarta. The tower business accounted for about 20 percent of revenue at the mobile-phone carrier in the first half, according to an April filing by Indosat.
“It should be a win-win solution for both companies,” Pasaribu said by phone from Jakarta. “Whatever the number of towers, Tower Bersama could have a portfolio that could be monetized.”
Indosat shares jumped as much as 3.9 percent to 5,300 rupiah as of 12:07 p.m. in Jakarta trading. Tower Bersama was unchanged.