JAKARTA - PT. Indosat Tbk. (ISAT), yesterday announced the signing of a Sell and Lease Back agreement with PT EPID Menara AssetCo (Edge Point Indonesia) for more than 4,200 telecommunication towers.
PT EPID Menara Assetco is a subsidiary of Edge Point Singapore in Indonesia, which is wholly owned by Digital Colony, a leading global digital infrastructure investor with extensive experience owning and operating cell towers. Indosat Ooredoo has agreed to sell the tower for a total price of USD 750 million, including additional offers, making it one of the largest transactions in Asia.
The sale is part of Indosat Ooredoo's turnaround strategy, which has refocused its business on digital products and services and strives to create optimal value from its infrastructure. Earning revenue from a portfolio of high quality telecommunications towers is a key pillar of the company's current strategy.
President Director & CEO of Indosat Ooredoo, Ahmad Al-Neama, said: “I am pleased that Indosat Ooredoo has reached an agreement with Edge Point Indonesia, which has long been planned and is in line with the Company's turnaround strategy to create more value for shareholders and customers. The agreement marks the third and final sale of Indosat Ooredoo's high-quality tower portfolio assets that propel us towards a leaner asset model and greater focus on delivering exceptional mobile digital services to our customers."
Edge Point Indonesia is declared the winner of the tender from the competitive tender process conducted by Indosat Ooredoo. This transaction is expected to be completed in Q2 2021, subject to general conditions, including shareholder approval from Indosat Ooredoo at the Extraordinary General Meeting of Shareholders, which is scheduled to be held on May 6. Indosat Ooredoo will lease the towers back for a period of 10 years to fulfill the applicable requirements. (LM)