Telkom Indonesia agrees unique share-swap to divest Mitratel to Tower Bersama
TBIG to become largest towerco in Indonesia, adding 3,928 Mitratel towers
PT Telkom Indonesia is to acquire a stake of up to 13.7% in Tower Bersama in return for the transfer of control of it’s towerco subsidiary Mitratel, and it’s 3,928 towers, to Tower Bersama. This unique transaction represents the best example of the relatively favourable valuation multiple arbitrage between mobile network operators and towercos – at time of print Tower Bersama was trading at 3.2x it’s IPO price. The deal also puts Tower Bersama in pole position should Telkom and Telkomsel’s remaining tower assets, estimated to number 23,000, come to market subsequently.
Unique deal structure
Tower Bersama (TBIG) has grown their portfolio by 35% and vaulted to the top of the Indonesian tower count table with the acquisition of Mitratel, and their 3,928 towers, from National operator PT Telkom Indonesia.