The signing of a conditional sales agreement between Mitratel and IOH by Mitratel President Director Theodorus Ardi Hartoko (second from right) and IOH CEO Vikram Sinha (second from left), witnessed by TelkomGroup CEO Ririek Adriansyah (far right) in Jakarta on Saturday ( 18/2).

Jakarta, 21 February 2023 – PT Telkom Indonesia (Persero) Tbk (Telkom) strengthens its telecommunication tower business through its subsidiary, PT Dayamitra Telekomunikasi Tbk (Mitratel) by forging a Conditional Sales Purchase Agreement for 997 telecommunication towers owned by Indosat Ooredoo Hutchison (IOH). This corporate action adds IOH's assets and tenants from IOH and tower tenants from other business partners to Mitratel. Mitratel President Director Theodorus Ardi Hartoko and IOH CEO Vikram Sinha marked this collaboration by signing of the CSPA in Jakarta on Saturday (18/2). Transaction between Mitratel and IOH is estimated for completion in the first quarter of 2023.

Mitratel President Director Theodorus Ardi Hartoko said this collaboration would strengthen and solidify the company's position as the largest independent and trusted owner of telecommunication towers in Southeast Asia.

"The addition of 997 telecommunications towers strengthens the Mitratel ecosystem in the telecommunications tower business and creates greater added value for all telecommunications operators. This collaboration also accelerates Mitratel's tower collocation growth opportunities and supports a series of Mitratel's efforts for business development to become an end-to-end digital infrastructure company. The acquisition is also an affirmation that Mitratel is an independent tower provider company and highly trusted by cellular operators in Indonesia," Theodorus said. 

Mitratel in 2022 acquired 6,088 telecommunication towers and 6,012 kilometers of fiber optics. This acquisition is Mitratel's effort to strengthen its position as the main telecommunication tower and fiber infrastructure consolidator in Indonesia. The CSPA agreement with IOH is expected to provide benefits for sustainable business growth for both companies. “Mitratel seeks to become a leading, sustainable growth-oriented company. The CSPA agreement with IOH would sustain our inorganic growth in previous years," Theodorus said. 

Along with its acquisition of towers, Mitratel is also rolling out a tenancy ratio improvement program by providing high-capacity connectivity by deploying fiber optic and satellite services, as well as providing power to towers, which will provide full support to telecommunication operators. Mitratel is optimistic that revenue will grow above the industry average with this corporate action, followed by an increase in the tenancy ratio. The company also believes in the level of profitability, with increasing earnings before interest tax, depreciation, and amortization (EBITDA) margin along with growth opportunities for tower collocations.

On a consolidated basis, Mitratel in the first nine months of 2022 scored 78.5% in EBITDA margin, an increase from 75.7% in the previous year. Even the EBITDA margin from the telecommunications tower leasing segment was recorded at 85.2%. Therefore, this acquisition is a good opportunity to acquire hundreds of telecommunication tower assets with strategic specifications and locations in a relatively short span of time, which would not have been possible with organic development.

“Mitratel's focus is on increasing fundamentals through asset monetization. Mitratel as a tower provider will continue to aggressively monetize its assets thereby opening up opportunities for business growth in the future," Theodorus said.

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