Hiswara Bunjamin & Tandjung and Milbank LLP have advised PT Indosat Tbk. on the sale and lease back of 3,100 telecommunication towers for approximately US$452 million.
Indonesian tower operators Mitratel and Protelindo will acquire 2,100 and 1,000 towers respectively, which Indosat will then lease back.
Upon completion of the transaction, Indosat Ooredoo will enter into a 10 year lease with each buyer for space on the sale towers. The transaction is anticipated to allow the buyers to strengthen their respective market positions while allowing the seller to monetize non-core assets. Indosat plans to use the proceeds of the sale for investment, principally to increase capacity and 4G network quality.
Indosat is one of Indonesia’s largest telecommunications network and service providers.
Teguh Arwiko (Picture) led the team advising Indosat, supported by associate Maydiba Thandi and trainee associate Chris Megananda.
The Singapore-based Milbank team was led by partner Giles Kennedy with support from partner Jacqueline Chan, senior associate Jim McFarlane and associate Raashi Mukherji.