Nov 24, 2011

XL scouts Rp17 trio from towers sale

Indonesia's third largest cellular operator PT XL Axiata Tbk (EXCL) is scouting Rp14 trillion from the sale of 7,000 telecommunication towers. The operator has mandated Goldman Sachs as the sale arranger.
XL Axiata President Director Hasnul Suhaemi said the company is in preliminary talks with three potential buyers. They have tower businesses.
"We plan to sell our towers to only one buyer, reducing a complicated terms and conditions during the process," he said as quoted by Bisnis Indonesia today.
However, he didn't specify the deadline for the sale. If we could not reach agreement with one buyer, we would delay and offer the towers to another potential buyer. By selling the towers, according to him, XL will focus into its business.
XL Axiata manages 9,000-10,000 towers. If the operator still needs additional towers, it will lease them from the tower operator.
The company plans to spend Rp6 trillion capital expenditure next year. About 60% of the total capex will be used to develop 3G network with subscribers target of 49.5 million, a 10% increase from targeted 45 million subscribers this year.

Disclosure: No position at the stock mentioned above.

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