PT Sarana Menara Nusantara, Tbk (the “Company”) hereby informs that the Company’s subsidiary, namely PT Profesional Telekomunikasi Indonesia (“Protelindo”), being a subsidiary which 99,99% of its shares is owned by the Company, has won a tender to purchase material assets in the form of telecommunication towers from the seller, namely PT XL Axiata Tbk (“XL”), to support the business activities and operations of Protelindo.
The number of telecommunication tower assets that will be transacted is 2,500 telecommunication towers with a transaction value of Rp3,568,000,000,000 (three trillion five hundred sixty eight billion Rupiah) (“Towers for Sale”).
In connection with the above matters, XL signed an Asset Purchase Agreement (“APA”) on 28 March 2016 with Protelindo and concurrent with the signing of the APA, XL and Protelindo have also entered into a Master Tower Lease Agreement whereby XL has agreed to lease back from Protelindo for 2,432 towers in which XL is the Anchor Tenant of the Towers for Sale for a term of 10 years.
The closing of this transaction is expected by 30 June 2016.
This transaction plan between Protelindo and XL is not an affiliated transaction as the purchaser and the seller do not have any affiliated relationship as provided in the applicable laws and regulations, specifically those applicable in the field of capital market.
Furthermore, we can also inform that the source of funds for the purchase of the telecommunication tower assets comes from bank loans and working capital of the Company/Protelindo.
On the plan to purchase the assets, there is no material impact on the operational and legal activities, financial condition or business continuity of the Company. It is expected that in the future the assets purchased by Protelindo can bring more revenue to Protelindo/the Company in connection with the additional telecommunication tower assets to support the business operational activities of the Company/Protelindo.
CLICK HERE to download joint published relase by Protelindo and XL.