Nusantara Infrastructure Enters the Telecommunication Tower Business to Enhance Its Position as Leading Infrastructure Investment Company
17 December 2013
Author: Administrator
As part of the company's vision to become Indonesia's leading infrastructure company, PT Nusantara Infrastructure (IDX ticker code: META) continues to realize its commitment to expand its presence in the telecommunication tower infrastructure and related sectors. To achieve its goals, Nusantara Infrastructure announced today its latest corporate action plan to acquire a majority shareholding in PT Tara Cell Intrabuana ("TowerCo"), through its subsidiary PT Telkom Infranusantara ("TI"). TI ad signed subscription agreement with TowerCo on 13 December 2013, with a transaction value of Rp 598 billion.
TowerCo, is an Indonesian independent telecommunication tower that owns and operates and other supporting facilities across Sumatera, Java and Batam island.
Apart from its attractive valuation, the acquisition of TowerCo is highly strategic move for us to strengthen our infrastructure business, as it will increase Nusantara Infrastructure's consolidated revenue.
The acquisition of TowerCo also gives the Company exposure to a sector with tremendous growth potential and prospects, given Indonesia's low market in mobile data (17% in 2012) compared to other emerging countries (Malaysia 66% and Singapore 74% in the same year).
Based on recent research from Mark plus Insights 2013: Competition in Telecommunication Industry in the Era of Data Service, the growth in the use of internet services on mobile phones has driven by 66% from 2012-2017, mainly driven by data streaming and virtual data requirements on clouds services through smart phone or other devices.
"The future trends in the telecommunication business will be services enhancement-focused, especially in mobile data. Telco players will be more aggressive in providing more infrastructure support for bigger and wider network and coverage where tower providers will play a big role. With this in mind, we strongly believe that entering into the telecommunication tower infrastructure sector will give significant benefit and added value to our business and stakeholders", added Deden.
This acquisition will diversify and strengthen Nusantara Infrastructure's existing business, which compares of four strong business pillars, including the ownership and management of toll roads (Jakarta and Makassar), ports water and renewable energy generators.
Consistent Positive Performance of Nusantara Infrastructure
The operating performance of Nusantara Infrastructure continues to show unfailing result. At the end of November 2013, Nusantara Infrastructure's stock (IDX ticker code: META) was included in the Morgan Stanley Composite International (MSCI) Index for the number of traded shares (free float) of at least 14%. In addition, according to the announced No. 00681/BEI.PSH/11-2013, as of early December 2013, META's shares have been incorporated in the list of shares that can be treated as margin trading and/or short selling transactions.
