Optical & Fixed Networks

Mitratel, Tower Bersama reportedly revive merger plans

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Category: Optical & Fixed Networks
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Mitratel, Tower Bersama reportedly revive merger plans

Indonesian tower companies Dayamitra Telekomunikasi (Mitratel) and Tower Bersama are reportedly reviving merger discussions that were abandoned nearly a decade ago, according to a report from Bloomberg.

Sources familiar with the matter told the publication that both companies are currently in early talks with advisers over a potential deal valued at around IDR 90 trillion (approximately US$5.5 billion).

Shares in Mitratel have declined by 17% this year, bringing its market capitalisation to roughly IDR 45 trillion, while Tower Bersama’s stock is down 4%, with a current market value of IDR 45.8 trillion.

Telecoms consolidation has been a growing trend in Indonesia. Earlier, XL Axiata and Smartfren Telecom announced a US$6.5 billion merger, and rivals Indosat and Ooredoo combined to form Indosat Ooredoo Hutchison in a US$6 billion deal.

Mitratel currently operates more than 39,000 tower sites, while Tower Bersama manages around 23,000.



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