Indonesia's Indosat Confirms Plans to Sell Tower Assets
Published on: 27th Feb 2014
Note -- this news article is more than a year old.
Indonesian mobile network operator, Indosat, plans to either spin off or sell its tower assets next year, the company's CEO has confirmed.
Speculation that a tower sale would occur has been rife for several months, as the company no longer considers it a core asset for the company.
He did not say how much the company would raise from the disposal. The company owns around 8,000 towers, and sold 2,500 towers in 2012 for US$406 million.
The company also owns a 5% stake in Tower Bersama and has hired a bank to assist with a sale.
"Next year we have to do something on the tower business because it's a distraction, so we plan to spin it off or sell it," said Indosat CEO Alexander Rusli.
Indosat has USD2 billion in debt, and and is currently seeking to convert it into local currency debt to avoid currency losses which have hurt the company over the past year.