Indonesian telecommunication and information service provider Indosat is selling its stake in tower operator Tower Bersama Infrastructure for as much as 1.39 trillion rupiah before commission and expenses (about $123 million).
In 2012 Indosat sold 2,500 of its mobile towers to Tower Bersama and acquired a 5% ownership share in the tower company. Tower Bersama paid $333 million in cash and 239.8 million in shares for Indosat’s towers.
Alexander Rusli, president director of Indosat, revealed the company’s plan to sell its stake in Tower Bersama last year. Indosat will reportedly use the proceeds from the sale to finance its capital expenditure for 2014. The company plans to spend up to 9 trillion rupiah this year, compared with 9.67 trillion rupiah in 2013. Its audited results for 2013 are yet to be announced.
Indosat is one of the three main mobile operators in Indonesia. As of the end of last year it had 59.6 million subscribers.
In other APAC infrastructure news, India’s Viom Networks has secured a deal to provide access to its network of over 42,000 telecom towers to 4G services provider Reliance Jio Infocomm. This will help Reliance Jio launch its high-speed data and voice services across the country faster and at a lower cost. The company also has tower sharing and fibre sharing deals with Indian broadband and telecommunications company Reliance Communications and recently signed an agreement with telecom tower infrastructure firm Bharti Infratel for the use of its tower assets as well.