Buying a tower for Rp 3.98 trillion, Tower Bersama (TBIG) asks for the blessing of the EGMS at the end of March 2021

Reporter: Wahyu Tri Rahmawati | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. PT Tower Bersama Infrastructure Tbk (TBIG) is getting closer to completing the acquisition of 3,000 towers belonging to PT Inti Bangun Sejahtera Tbk (IBST). The total value of the acquisition of this tower is Rp. 3.98 trillion, consisting of the purchase of Rp. 3.97 trillion for towers and Rp. 10.82 billion for land related to towers.

This transaction is a material transaction because it reached 60.4% of Tower Bersama’s equity as of September 30, 2020, which amounted to IDR 6.160 trillion. Therefore, TBIG will ask for the approval of the extraordinary general meeting of shareholders (EGMS) to continue this corporate action. “Tower Bersama EGMS will be held on Tuesday, March 30, 2021,” Tower Bersama said in the disclosure of information regarding the tower acquisition on the Indonesia Stock Exchange website, Friday (26/3).

Tower Bersama said, the transaction settlement will be carried out on the fifth working day after all preliminary requirements are met or set aside and two months after the date of the conditional asset sale and purchase agreement, the later one. Tower Bersama and Inti Bangun agree that the settlement will be carried out no later than the long-stop date on May 31, 2021 or another date mutually agreed in writing.

To pay for the acquisition, Tower Bersama will disburse a loan from one of the facilities revolving amounting to Rp 3.99 trillion. After the transaction, TBIG’s assets and liabilities will each increase by Rp 4.44 trillion.

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Meanwhile, Tower Bersama’s financial ratio after the transaction will also increase, particularly the debt to equity ratio (DER) from 3.71 times to 4.31 times and the debt to assets ratio (DAR) from 0.71 times to 0.74 times.

Proforma by using the book as of September 30, 2020, when this conditional asset sale and purchase agreement is closed, then the acquisition of 3,000 towers will add TBIG towers to more than 19,000 sites which will immediately generate higher revenue and EBITDA.

As of September 30, 2020, this issuer coded as TBIG shares has 31,703 leases and 16,215 telecommunication sites. The company’s telecommunication sites consist of 16,093 telecommunication towers and 122 DAS networks. With a total rental rate of 31,581 telecommunication towers, the TBIG tenancy ratio will be 1.96.

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