JAKARTA (Yosefardi) – PT Telekomunikasi Indonesia (Telkom) Tbk (TLKM) has today (October 10) signed agreement with PT Tower Bersama Infrastructure Tbk (TBIG) to acquire up to 13.7% TBIG shares after increasing capital through issuing new shares convertible to TLKM’s shares in PT Dayamitra Telekomunikasi (Mitratel), subsidiary of TLKM engaging in tower business.
Telkom will in first phase convert 49% Mitratel shares with 290 million new shares of TBIG or 5.7% of TBIG’s enlarged capital.
Within 2 years, Telkom has option to convert 51% Mitratel shares with 473 million of TBIG shares, then Telkom will hold 13.7% shares of TBIG.
Besides the equity stake in TBIG, Telkom will receive a cash consideration of up to Rp 1.74 trillion in the event Mitratel achieves certain performance milestones.
This transaction needs approval of TBIG’s shareholders. Barclays is assigned as financial adviser for the transaction.
As of June 2014, Mitratel owns and operates 3,928 towers serving 4,363 tenants. While TBIG owns and operates 11,266 telecommunication sites servin 18,028 tenants. TBIG is controlled by Saratoga Capital and Provident Capital.