Indosat, an Indonesian Telecommunication provider, is considering selling some telecom towers as it continues to unload assets in response to the growing demand for digital infrastructure according to the people who are knowledgeable about the matter.
The portfolio consists of around 1,800 sites according to the sources who asked to remain anonymous since the matter is private. The Jakarta-based company, which changed its name to Indosat Ooredoo Hutchison following a recent merger, might raise roughly $250 million through a sale and companies in the industry and funds with an emphasis on infrastructure could be prospective buyers.
However, considering that Steve Saerang, an Indosat spokesperson, declined to comment, deliberations are preliminary, and no decisions have been taken yet.
With a 14% increase in share price this year, Indosat is now worth around $3.8 billion.
A sale would come after Indosat sold more than 4,200 towers to EdgePoint Infrastructure, a company supported by the Abu Dhabi Investment Authority and DigitalBridge Group Inc., for $750 million last year.
In May, Indosat and Big Data Exchange, the platform for data centers operated by investment company I Squared, reached an agreement to create a $300 million joint venture for Indosat’s data centers.
Moreover, in order to compete in Southeast Asia’s largest subscriber market, CK Hutchison Holdings Ltd. and Qatar’s Ooredoo decided to combine their Indonesian telecom operations last year in a $6 billion deal and the transaction was finished in January.
