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Indonesia – Skadden Representing Indosat in its sale and leaseback of 2,500 towers to PT Tower Bersama.

17 February, 2012

 

 

Skadden is representing PT Indosat Tbk (Indosat) in its sale and leaseback of 2,500 towers to PT Tower Bersama Infrastructure Tbk for a total potential consideration of US$519 million. The consideration comprises US$406 million payable at closing in cash and an approximately 5% equity interest in Tower Bersama, and a maximum possible earn-out payment of US$113 million payable over 10 years, based on earnings from colocations on the tower portfolio. Indosat will lease back the towers for a minimum period of 10 years for use in its wireless business. The transaction is the largest tower sale and leaseback transaction to-date in Indonesia and enables Indosat to monetize a portion of its non-core assets, while preserving flexibility for Indosat to further reduce costs through network modernization and sharing of its radio access network with other operators.  
Completion of the transaction is subject to various approvals including certain of Indosat's bondholders and lenders and Tower Bersama's shareholders.  
 
Indosat, which is Indonesia's second largest telecommunications operator and is listed on the NYSE and Indonesian stock exchange, is  a subsidiary of Q-tel, the Qatari-based global telecommunications operator. Tower Bersama is one of the two leading independent wireless tower companies in Indonesia and is listed on the Indonesian stock exchange.  The Skadden team includes in Hong Kong and Singapore, Jonathan Stone, Rajeev Duggal, Sean McAuliffe and Zach Levine, corporate; Simon Cowled, energy and infrastructure projects; and Paul Mitchard and Calvin Chan, dispute resolution.
 
For further information, please contact:
 
Andrew Towler, Skadden
 
 

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