Acquisition news blows, Centratama (CENT) shares drop 3.50%

ILLUSTRATION. Market participants are still waiting for the truth of the news from Centratama (CENT).

Reporter: Ika Puspitasari | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. Northstar Advisors Pte, the majority shareholder of PT Centratama Telekomunikasi Indonesia Tbk (CENT) is in exclusive talks with Digital Colony regarding the plan to acquire shares in Centratama Telekomunikasi Indonesia.

If you look at the data from the Indonesia Stock Exchange, through its subsidiary Clover Universal Enterprise Ltd, Northstar Advisors owns 13.04 billion shares, or 41.80%, and is the majority shareholder in the tower company.

According to sources Bloomberg, the value of this acquisition transaction reached US $ 150 million. United States (US) company Digital Colony has beaten its competitors to bid for ownership of CENT shares.

Digital Colony is known to be an investment company from the US that focuses on the largest digital infrastructure. The company is also a subsidiary of Colony Capital.

Also Read: After Northstar Advisors, Centratama Telekomunikasi (CENT) is targeted by US companies

The assets managed by the company are now more than US $ 20 billion. The company also focuses on investing in data centers, telecommunications towers, optical fiber, and small cell network.

Muhammad Nafan Aji Gusta Utama Analyst at Binaartha Sekuritas revealed that the plan to acquire CENT shares by one of the major digital infrastructure companies in the US, namely Digital Colony, will have a positive impact on CENT’s performance. “If the plan can be realized and true, it should be able to provide benefits to CENT in order to improve performance, for example from its resources,” Nafan said, Friday (25/9).

In terms of performance, this issuer is still able to book revenues of Rp 508.60 billion in the first half of this year, an increase of 27.15% from the same period the previous year of Rp 399.99 billion. However, CENT must bear a loss of IDR 21.81 billion in the first semester of 2020. Even though in the same period last year CENT still pocketed a profit for the current period of Rp 12.12 billion.

Also Read: Clover Borong 1.83 Billion CENT Shares, Since June Prices Have Raised 177.36%

Nafan added that market players are still waiting for the truth of the news from CENT. Kontan has contacted the management of Centratama Telekomunikasi Indonesia to confirm the news about the acquisition, unfortunately there has been no response from CENT management until this news was written.

Nafan added, the uncertainty of news from the planned transaction actually caused CENT’s share price to be corrected 3.50% to the price of Rp 138 per share on Friday trading (25/9). For now, he advises market participants to hold stock CENT.

Also Read: Centratama Delays Global Bond Issue US $ 500 Million