PT Indosat Tbk (ISAT) plans to sell 4,247 telecommunication towers to PT Epid Menara Assetco (PT EMA) and lease back 4,085 towers from EMA.

Based on Indosat's disclosure of information to the IDX on Wednesday (31/3), the transaction's value was estimated at Rp10,285 trillion or more, amounting to 79.6% of the company's equity-based on the financial statements ended December 31, 2020, amounting to Rp6.456 trillion.

Indosat will use proceeds from the tower's sale to accelerate payments for part of the interest-bearing loan, pay cash dividends to shareholders, and finance the company's operational activities.

Indosat and PT EMA will immediately sign a master tower lease agreement to realize the transaction. Under the transaction, Indosat has a ten-year lease period. Indosat can extend the lease period with a written agreement.

The transaction plan is scheduled to be carried out no later than June 30, 2021.

This corporate action is carried out in connection with the investment plan that the company has set from 2018 to the next few years. Therefore, to accelerate the plan, the company is considering an inorganic initiative to sell strategic towers.

Meanwhile, the benefits of implementing the transaction plan for the company are accelerating the company's goals to provide improved customer service and optimization of the capital structure.