Axiata’s Indonesia Subsidiary Sells 3,500 Telco Towers for RM1.5b

KUALA LUMPUR: Axiata Group Bhd’s 66.5% Indonesian subsidiary PT XL Axiata Tb has declared PT Solusi Tunas Pratama Tbk as the winner in the tender process for the sale of its 3,500 telecommunications towers.

Axiata told Bursa Malaysia on Wednesday the tender, which was launched in July 2014, was completed on Sept 30.

“Following the above, XL and STP had also entered into an asset purchase agreement with a purchase price of 5.6 trillion rupiah (US$460.5mil, RM1.506bil) to be paid entirely in cash by Dec 31, 2014.

”Concurrent with the execution of the APA, the company and STP have also entered into a master tower lease agreement whereby XL has agreed to leaseback from STP the towers sold for a period of 10 years,” it said.

Reuters reported the sale by Indonesia's second-largest telecoms was aimed at paying off some of its debt after XL acquired telecommunication operator PT Axis Telekom for US$865mil this year.

SOURCE:

http://www.thestar.com.my/Business/Business-News/2014/10/01/Indonesia-XL-Axiata-sells-telco-towers-to-Solusi-Tunas-for-US$460m/