Mubasher: The Indonesian operating company PT Indosat Tbk, a subsidiary of National Mobile Telecommunications Company (Ooredoo), has entered into a $750 million sale and leaseback agreement with PT EPID Menara AssetCo for over 4,200 telecommunications towers.
The agreement with PT EPID Menara AssetCo, an Indonesian subsidiary of Edge Point Singapore which is wholly owned by Digital Colony, is one of the largest deals of its kind in Asia, according to a press release on Wednesday.
Indosat Ooredoo will lease backspace on the towers for a ten-year period to meet its ongoing requirements.
This transaction will enable Indosat Ooredoo to unlock capital to create value for shareholders and support its strong growth momentum by improving network performance and launching innovative new digital solutions.
The transaction is expected to close in the second quarter (Q2) of 2021, subject to customary conditions, including shareholder approval by Indosat Ooredoo.
Before entering into this deal, Ooredoo had a global portfolio of around 27,000 towers.
The Managing Director of Ooredoo Group, Aziz Aluthman Fakhroo, said: "This strategy [Ooredoo's new strategy] incorporates a shift towards an asset-light model that will help us unlock significant capital and enable us to focus on our core mission of delivering outstanding digital and enterprise services to our customer base."
Meanwhile, the President Director and CEO of Indosat Ooredoo, Ahmad Al Neama, remarked: "The deal marks the third and final sale of assets from our high-quality tower portfolio and continues our transition into a leading digital telecoms company."