Indosat Ooredoo, an Indonesian subsidiary of the Ooredoo Group, has signed a sale and leaseback agreement with Edge Point Indonesia, an Indonesian subsidiary of Edge Point Singapore, for more than 4,200 telecommunications towers. Indosat Ooredoo will lease the space on the towers, for a period of 10 years, to meet its current requirements. The sale transaction is valued at USD750 million, including a supplementary offer.
Indosat Ooredoo selected Edge Point Indonesia through a competitive tender process. The transaction is expected to close in the second quarter of 2021. The closing is subject to customary conditions, including shareholders approval to be obtained by Indosat Ooredoo at an extraordinary general meeting (EGM) that is expected to be held on May 6, 2021.
The sale is expected to create value for shareholders, give a boost to Indosat Ooredoo’s growth momentum through network performance improvements and the launch of innovative digital solutions. This sale is a part of the Ooredoo Group’s strategy to shift to a more flexible asset light model.