Ivan Dasa Saputra
Telecommunications infrastructure provider Tower Bersama completed the $406 million acquisition of 2,500 towers from Indosat on Thursday, giving the company a major boost in its efforts to service clients in the competitive sector.
“The acquisition is expected to boost our income,” Hardi Wijaya Liong, chief executive of Tower Bersama, said in statement to the Indonesia Stock Exchange (IDX) on Friday.
The company used cash and bank loans to finance the acquisition. As well, it sold 239.83 million new shares, or 5 percent of the company’s enlarged capital, to Indosat.
“We remain focused to boost our performance,” Hardi said in the statement.
Net income at Tower rose to Rp 283 billion ($30 million) from January to June, up 31 percent on the same period last year. Revenue rose 47 percent to Rp 647 billion, the company said in a filing to the Indonesia Stock Exchange on Thursday.
Tower Bersama had 8,584 tenants at 5,416 telecommunication sites as of the end of June. The sites included 3,959 towers, 1,040 shelter-only sites and 417 distributed-antenna system networks.
The company’s number of tenants rose from 5,381 at 3,610 sites by the end of June last year.
While the tenant occupancy ratio improved to 1.8 from 1.7 during the same period last year. Hardi said the improvement in the tenancy indicator showed that most of the firm’s new tenants came from its existing towers.
Tower Bersama’s existing clients include telecommunications service providers Telkomsel, Telkom Flexy, Hutchison CP Telecommunications, Indosat, and XL Axiata.
Shares in Tower Bersama fell 1.8 percent to Rp 4,000 in Jakarta trading on Friday.