SMN Secures $40m Deal to Purchase 200 Telecommunications Towers
Sarana Menara Nusantara, through its unit Profesional Telekomunikasi Indonesia, has agreed to purchase 200 telecommunication towers for Rp 376 billion ($40 million), the company said in a statement that was sent to the Indonesia Stock Exchange on Friday.
Arif Pradana, corporate secretary of Sarana, said that the company signed an asset purchase agreement with Central Investindo CI and Mitra Karya Propertindo on Wednesday.
“The deal is expected to be concluded before the end of October,” Arif said in the statement submitted to the exchange.
SMN is a telecommunications tower provider. The move is expected to help it expand its business this year.
The company added 1,291 new towers, through the end of 2011, raising its total to 6,363, president director Adam Gifari said in June. SMN will build some new towers and acquire others based on a previous agreement with Hutchison CP Telecommunication.
Adam said this year’s plans were for his company to close out its agreement with Hutchison, signed in 2010, to buy 1,000 towers. There are about 300 towers left to transfer from Hutchison to SMN, he said. The president director did not disclose the value of the transaction.
SMN is upbeat about potential demand for telecommunication towers, which seems to be supported by increased smartphone and wireless usage.
Adam said without providing figures that he expected the total of Indonesia’s smartphone users to double next year from 2011. The number of 3G service users is expected to increase to 34 percent of total cellphone users in 2015. It currently stands at 19 percent.
In the first quarter of 2012, Adam said, the company added 404 new towers, bringing its total to 6,767. The number of tenants rose to 11,510 by the end of March, from 10,700 tenants by the end of 2011.
SMN traded flat at Rp 16,500 on the Indonesia Stock Exchange on Friday.