Jakarta, Indonesia – PT Centratama Telekomunikasi Indonesia, Tbk (“CENT”) announced its acquisition of PT EPID Menara AssetCo (“EMA”) shares today from EP ID Holdings Pte. Ltd., a subsidiary of EdgePoint Group to consolidate EMA’s books and assets under the Centratama Group. This includes over 4,000 telecommunication towers acquired by EMA from Indosat Ooredoo Hutchison (previously Indosat Ooredoo) in 2021. Following this, Centratama Group now owns a total of over 9,000 sites across Indonesia, nearly doubling in size.
“As a company offering one-stop telecommunications solutions, Centratama Group is continuously seeking opportunities to grow our telecommunications tower portfolio. Acquiring EMA is a strategic step in the right direction for Centratama Group to establish our position as one of the largest independent tower provider companies in Indonesia,” President Director and Chief Executive Officer of Centratama Group, Yan Raymond said.
On December 30, 2021, Centratama Group entered into a Conditional Shares Sale and Purchase Agreement (“CSPA”) with EMA and its Shareholders to acquire EMA.
The total capital investment is valued at a maximum of USD350 million, equivalent to Rp 5.01 trillion, plus assumption of EMA’s existing debt.
Commenting on the acquisition, Suresh Sidhu, a Commissioner of CENT and Chief Executive Officer of EdgePoint said, “We are very pleased with this transaction as it will confirm Centratama Group’s position as EdgePoint’s premier entity in Indonesia. We will now be able to more efficiently channel our investment into expanding Centratama’s suite of next-generation connectivity solutions. This transaction will also greatly simplify how we work with operators in the country.”
Through this acquisition, Centratama Group will also benefit from providing services to EMA’s anchor tenant Indosat Ooredoo Hutchison, one of the largest cellular operators in Indonesia, via EMA’s long-term leaseback contract, signed originally in May 2021. Additionally, Centratama Group’s portfolio of more than 9,000 current sites reaffirms its position as the third largest independent tower provider in Indonesia, strengthening its presence and ability to offer wider coverage to Mobile Network Operators and their customer communities.
CENT also announced today that it has secured loan commitments equivalent to USD850m from a group of domestic Indonesian and international banks to refinance its existing credit facilities and provide further liquidity to support its ambitious growth plans over the coming years. This is in line with the company’s refinancing strategy that targets to reduce borrowing costs, better match the currency of cash flows to liabilities, ensure adequate liquidity and provide financial flexibility for the growth of the organisation.