Indosat Ooredoo confirmed a $750 million deal to sell more than 4,200 towers to Digital Colony subsidiary EdgePoint Indonesia, an agreement hailed by the pair as one of the largest of its kind in Asia.
The agreement had been rumoured to be close [1] by Bloomberg yesterday (29 March). It follows a competitive tender process for the assets and is expected to close in Q2.
As with the majority of passive infrastructure sale agreements, it includes a lease pact between the two parties, with the initial deal lasting ten years.
In a statement, Indosat Ooredoo said the sale would “unlock capital” with a view to making “further improvements to its network performance and the launch of innovative new digital solutions to enhance the customer experience”.
The move is part of a wider turnaround strategy [2] to refocus the business and follows the sale of similar assets in 2019 [3].
Indosat Ooredoo president director and CEO Ahmad Al-Neama (pictured, centre) said the deal was “the third and final sale of assets from Indosat Ooredoo’s high-quality tower portfolio that moves us towards a more asset-light model and greater focus on delivering outstanding mobile digital services”.
[1] https://www.mobileworldlive.com/asia/asia-news/indosat-nears-deal-to-offload-4000-towers
[2] https://www.mobileworldlive.com/asia/asia-news/indosat-revenue-climbs-on-strong-arpu-gains
[3] https://www.mobileworldlive.com/featured-content/top-three/indosat-ooredoo-offloads-towers-in-450m-deal
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