SMN, the leading telecom infrastructure provider in Indonesia and the parent company of PT Protelindo, announced that Protelindo has recently signed definitive agreements with several selling parties to acquire up to 100% of the shares in KIN, an independent telecommunications tower provider in Indonesia.
“KIN owns approximately 1,400 telecommunication towers with over 2,000 lease tenants. We believe that both the tower locations and tenant mix are highly complementary to Protelindo's existing portfolio”, stated Bapak Aming Santoso, President Director of SMN. “We expect the acquisition closing will take approximately 6 weeks. During this period we will finalize documentation and prepare to efficiently integrate Protelindo’s and KIN’s operations in order to minimize any possible operational disruptions to the combined entity’s customers. This acquisition will allow both Protelindo and KIN to provide an enhanced suite of offerings to our customers and will lead to synergies in operations and financial costs.”, continued Bapak Aming Santoso. “The agreed price for up to 100 % ownership of the shares is approximately IDR 1.4 trillion, subject to adjustments. Funding for this transaction is planned to be through a combination of internal cash and debt, leveraging off SMN’s strong, investment grade rated, balance sheet with the lowest cost of funds in the industry. The acquisition of KIN’s shares is consistent with the Company's 'Build, Buy Return' strategy and is within the Company’s investment return criteria with cash flow yield on the towers substantially higher than our cost of funds”, he added.
SMN has been listed on the Indonesian Stock Exchange since 2010 and has a market capitalization of approximately IDR 34.8 trillion. More than 50 percent of SMN's shares are owned by vehicles belong to the Indonesia based Hartono Family, the shareholders of the Djarum Group of Companies.
SMN hired Redpeak Advisers, ING, Duane Morris and Makes & Partners as advisers for this transaction.