STI divests tower assets
30 November 2017 – ice group company PT Sampoerna Telekomunikasi Indonesia (“STI”) has agreed to sell its tower assets to PT Inti Bangun Sejahtera, Tbk (“IBS”), one of Indonesia’s largest wireless telecommunications tower companies.
In parallel, STI and IBS have entered into a long-term master tower lease agreement whereby IBS will support STI with its tower infrastructure needs.
STI is in the process of deploying its 4G network throughout Indonesia and believes that IBS is well positioned to support STI in its network roll-out plan. At the end of 2016, IBS’ tower portfolio comprised of 3,677 units.
“The transaction reflects STI’s strategy to streamline its operations by outsourcing non-core functions in order to focus on providing 4G broadband services to its consumer and business customers. STI aims to have the #1 4G area coverage in Indonesia by end of 2018” says JD Fouchard, CEO of ice group, which holds a controlling ownership share in STI.
As a result of this transaction, STI will receive IDR 414 billion, equivalent to US$31 million. STI intends to use the proceeds to repay its existing debt and expects to be debt free following this transaction.
The transaction closing will occur in various stages and is subject to customary closing conditions.
For further information, please contact:
Johan Michelsen, Deputy CEO, ice group, tel: +47 410 87 000
Endre Aaberg Johansen, Corporate Communications AS, tel: +47 41 61 06 05, email: firstname.lastname@example.org