XL Axiata's President Director, Dian Siswarini (middle left) along with Protelindo's President Director, Ferdinandus Aming Santoso (middle right) in the signing of the sale and purchase agreement for the sale of telecommunications towers in Jakarta. Friday (7/2). XL Axiata announced the winner of the company's tower sales tender of 2,782 units and leasing back land owned by XL Axiata where most of the towers are located worth a total Rp 4,050,255,163,200. There are two companies that won this tender, PT Profesional Telekomunikasi Indonesia (Protelindo) and PT Centratama Menara Indonesia (CMI).
Jakarta, February 11th 2020. PT XL Axiata Tbk. (XL Axiata) announced the winning bidders for the company's tower sale tender of 2,782 units and the leasing back of land owned by XL Axiata where some of the towers are located for a total of IDR 4,050,255,163.200. There are two companies that won this tender, PT Profesional Telekomunikasi Indonesia (Protelindo) and PT Centratama Menara Indonesia (CMI). The signing of the sale and purchase agreement for this transaction was carried out on Friday, February 7th 2020, after previously have gone through the eAuction process which was carried out on January 31st 2020.
Protelindo won tender for the acquisition of 1,728 units (tower) and CMI won tender for the acquisition of 1,054 units (tower).
President Director & CEO XL Axiata, Dian Siswarini said, “After the completion of this transaction, we will be able to focus more on our core business in providing cellular and mobile data services, especially in improving the quality of service to customers and the public. We are also optimistic this transaction will have a positive impact on optimizing the effectiveness of operational costs as well as the costs of supporting facilities and infrastructure.”
Dian also added “It is also important for us to obtain a lower/competitive rental pricing for the towers that are sold to ensure stronger balance sheet management, including the achievement of the company's sustainable profitability. In addition, this transaction will also be able to support XL Axiata in strengthening its’ capital structure, even though currently XL Axiata already has a stable and strong financial balance sheet to support the operational activities and company expansion."
XL Axiata has obtained the most competitive rental requirements for the towers through the sale and lease-back mechanism as mentioned above. The sale of telecommunications towers owned by XL Axiata and the leasing of XL Axiata's land in which some towers are located with a transaction value of IDR 4.050.255.163.200, is equivalent to 21% of the company's equity based on the Company's Financial Statements for the period of December 31, 2019 (ended), which was reviewed by The Public Accountant Office of Tanudiredja, Wibisana, Rintis & Partners.
In addition to the sale and purchase agreement, XL Axiata has also signed the Master Lease Agreement with the two companies that won the tender. XL Axiata will lease back (rent) the 2,763 units (towers) that was sold, for a period of 10 years, which XL Axiata will be the main tenant (anchor tenant), calculated from the closing date according to the Master Lease Agreement. The intended closing date is the date of transaction settlement which is scheduled on (or before) June 30th 2020.
Furthermore, because some of the towers sold to the winners are on land owned by XL Axiata, XL Axiata will also carry out a lease for the land to the winners.
After the last tower sale transaction, XL Axiata will still own around 1,600 towers.
The tender for the telecommunications towers sale by XL Axiata has begun from November 5th 2019. The tender was attended by almost all telecommunication tower leasing companies operating in Indonesia.