Is a $3 billion tower company sale on the cards for Indonesia?

Is a $3 billion tower company sale on the cards for Indonesia?

Another tower company may be moving to new ownership. A number of recent reports have suggested that the owners of Indonesia’s Tower Bersama are considering the potential sale of the company.

According to Bloomberg, quoting its own informed sources, the two largest shareholders of the infrastructure company, private equity firm Provident Capital Indonesia and PT Wahana Anugerah Sejahtera (a subsidiary of investment company PT Saratoga Investama Sedaya), have asked banks for proposals on a possible transaction for their stakes.

PT Tower Bersama Infrastructure Tbk is the holding company of the Tower Bersama Group. Tower Bersama Group was established in 2004 and is one of the two leading independent tower companies in Indonesia.

Its principal business is leasing space for antennas and other equipment for wireless signal transmission at tower sites under long-term lease agreements. It also provides telecommunications operators with access to its distributed antenna system (DAS) networks in shopping malls and office buildings in major urban areas.

Tower Bersama has a market value of about $5.3 billion, making this a very big deal indeed for PT Wahana Anugerah Sejahtera, which owns 34 percent of Tower Bersama’s outstanding shares, and Provident Capital which holds 22 percent.

These stakes could be worth over $3 billion, a valuation that would make this one of the biggest deals of the year for Indonesia, although it has been pointed out to Bloomsberg that, while deliberations may be underway, they are at an early stage and may not result in the sale of the company.