Telkom Indonesia mulls merger of tower unit business with rival, report says

Reuters writes that PT Telkom Indonesia is considering a plan to merge its mobile tower unit businesses with those of another tower operator, in a bid to expand its presence in that market segment. Under the plan, details for which are currently sketchy, Telkom is said to be considering merging its PT Dayamitra Telekomunikasi (Mitratel) unit with one of four publicly listed tower firms – including Tower Bersama and Sarana Menara. However, Telkom director Indra Utoyo is quoted as saying that talks have yet to begin on the proposal. ‘The plan is to unlock the value of Mitratel, which could be via merger with listed telecom firms or an IPO,’ the official told Reuters, adding that the telco has hired Barclays Capital to assess the plan. Telkom’s Mitratel unit currently manages around 3,000 towers in Indonesia and is in the throes of purchasing a further 14,000 towers from its sister company, mobile operator, PT Telkomsel.