JAKARTA (IndoTelko) – PT Tower Bersama Infrastructure Tbk (TBIG ) announces that it has entered into an agreement with PT Telekomunikasi Indonesia Tbk (Telkom) where Telkom will subscribe for new shares in TBIG in exchange for Telkom's shares in PT Dayamitra Telekomunikasi (Mitratel).
Under this agreement, Telkom will initially exchange its 49% stake in Mitratel for 290 million new TBIG shares, representing approximately 5.7% of the enlarged TBIG share capital.
Upon completion of the initial exchange, TBIG will assume management control and consolidate Mitratel into its accounts.
In addition, Telkom has been granted a two year option to exchange its remaining 51% stake in Mitratel for an additional 472.5 million TBIG shares that will increase Telkom's stake to up to 13.7% of TBIG's enlarged share capital. Besides the equity stake in TBIG, Telkom will receive a cash consideration of up to Rp 1,739 billion in the event Mitratel achieves certain performance milestones.
Commenting on the transaction, Hardi Wijaya Liong, TBIG's Chief Executive Officer, said: "We are delighted to have entered into this strategic partnership with Telkom which we view to be a major milestone for TBIG. This partnership not only allows us to significantly add to the current scale of our business, both from a tenancy and revenue perspective as well as our geographical footprint, but it also strengthens the business relationship between TBIG and the Telkom Group. We are very excited about the growth potential of Mitratel and synergies that can be extracted from this partnership with Telkom."
The completion of the transaction is subject to various approvals including those of TBIG shareholders and is expected to close in Q4 2014.(es)