Source: Company, July 1, 2024

On 1 July 2024, PT iForte Solusi Infotek (“iForte”), a subsidiary of PT Profesional Telekomunikasi Indonesia (“Protelindo”) completed the acquisition of 90.11% of the shares of PT Inti Bangun Sejahtera, Tbk (“IBST”) from various sellers via a tender offer process that was conducted by them. Protelindo is directly owned by PT Sarana Menara Nusantara, Tbk (“TOWR”).

This transaction will further strengthen Protelindo's position as Indonesia’s largest independent digital infrastructure company, boosting tower ownership to over 34,300 towers with almost 58,000 tenancies and increasing its fiber network to nearly 170,000 km to readily support its FTTT (over 205,000 km revenue generating fiber), connectivity (over 4,500 corporate customers) and FTTH (over 1.1 million homes passed) businesses. The acquisition is expected to generate additional EBITDA of over IDR700 billion.

This acquisition price is IDR2,813 per IBST common share for a total consideration of approximately IDR3.42 trillion for the 90.11% stake. Following the completion of this transaction, iForte will conduct a mandatory tender offer.

Ferdinandus Aming Santoso, CEO of the Protelindo Group, said "This transaction is a strategic step for the Protelindo Group to continue to improve both the group's operational efficiency and its value to clients. Given the complementarity of IBST’s tower, FTTT, FTTH, and connectivity businesses, we expect to extract significant synergies, akin to our previous success in integrating iForte, KIN and STP. We are also excited to strengthen our partnership with Smartfren through a new 10-year lease arrangement for the existing tower and FTTT business in IBST and with their binding commitment for additional tower collocation and FTTT business going forward.”

Redpeak Advisers, one of the leading digital infrastructure advisors in the region and a long-standing advisor to Protelindo, acted as its financial advisor for this transaction.

Makes & Partners acted as Protelindo’s external legal counsel.