Protelindo gains over 2,600 new tenancies with 1,728 tower purchase from XL
Jakarta, February 11, 2020 | Source: Company

On February 7, 2020, PT Profesional Telekomunikasi Indonesia (“Protelindo”) signed a sale and purchase agreement for 1,728 towers from PT XL Axiata Tbk (“XL”) with over 2,600 tenancies. XL has also signed a 10-year sale lease back agreement. Protelindo will pay an  amount of IDR 2,248 billion for the tower purchase in an all-cash transaction, derived from a combination of Protelindo’s cash on hand and additional new debt. This additional debt will have limited impact on Protelindo’s leverage with net debt to annualized EBITDA remaining below 3.0x.

“The acquisition multiple is in line with our previous asset purchases,” commented Adam Gifari, Vice President Director of Protelindo. “This transaction adds nearly IDR 2.9 trillion in contracted revenue and further strengthens our relationship with XL who is now our largest client.”

"Acquiring over 2,600 new tenancies cements Protelindo’s position as the largest owner and operator of telecommunication towers in Indonesia and brings our total tower count to over 21,000,” said Ferdinandus Aming Santoso, President Director of Protelindo. “The efficiency of our operation will allow us to manage these additional towers efficiently and this purchase will also contribute positive financial results from day 1.”

The addition of over 2,600 tenancies from the transaction is expected to add over IDR 340 billion to Protelindo’s total annualized run-rate revenue. More than 50% of the towers are located in Java with an ex-Java concentration in Sumatera and in Bali and Nusa Tenggara.

The transaction is expected to close by the end of the first quarter 2020.


Redpeak Advisers acted as Protelindo’s financial adviser for this transaction.

Duane Morris and Makes & Partners acted as legal counsels for Protelindo.


SMN, owner of Protelindo, is traded under the ticker "TOWR" on the Bursa Efek Indonesia.