PT XL Axiata Tbk. (XL), a mobile operator in Indonesia to sell 2,500 towers to PT Professional Telekomunikasi Indonesia (Protelindo).
Protelindo which is the leading independent provider of tower has been declared the winner of the tender process organized XL for sale 2,500 telecommunication towers.
In an official statement received Tribunnewsbogor.com, Tuesday (29/03/2016), the purchase value of Rp 3.568.000.000.000 towers (three trillion five hundred and sixty-eight billion Rupiah).
Payment transaction entirely in cash without any other components either stock or deferred payment.
Along with the signing of the Asset Purchase Agreement, XL and Protelindo also signed Master Tower Lease Agreement.
XL has agreed to lease back 2,432 towers from Protelindo for a period of 10 years.
XL also gain a competitive lease terms as major tenants that provide benefits for XL in the form of savings on capital expenditures and operational costs of the company.
"XL will use the proceeds to optimize the balance sheet."
"XL has a good relationship with Protelindo and appreciate the opportunity to partner with Protelindo long-term basis."
"This transaction also demonstrates the strength and discipline XL in conducting strategic transactions and is one of several important transactions were successfully conducted within the last two years."
This is corroborated by Aming Santoso as Director Protelindo. "This transaction is a win-win for both companies. Protelindo can use the capabilities of its balance sheet to purchase the tower, on the other hand can monetize towernya XL at the best price, "said Aming Santoso.
"With the addition of 2,500 towers, the number of towers we will rise to almost 15,000 while we still can reduce the level of debt at a low level. For several years, XL has become a trusted partner, and the transaction is expected to strengthen the cooperative relationship that has been fostered."
Closing of the transaction is expected to be made on or before June 30, 2016. (tribunnews.com)
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