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Protelindo: Towers of strength
09 April 2009
With liquidity hard to come by, the Protelindo deal proves there is still bank appetite for well-structured telecoms deals and quality assets backed by strong management. By Chris Box, director of Project and Export Finance, Standard Chartered Bank.
Indonesia – a wireless market characterised by declining tariffs and increasing usage, a large subscriber base, inadequate geographic coverage and a relatively large number of smaller, capital-constrained new operators.
This was what senior executives, including one of the founders of America Tower Corporation (the largest independent telecom tower company in US by market capitalisation), were looking for in late 2007, as they scoured for a suitable Asian market to replicate the success they had tasted in the Americas. Together with financial sponsor Farallon Capital Management, they acquired PT Professional Telekomunikasi Indonesia (Protelindo), a relatively small Indonesian independent telecom tower company. This was the first step towards becoming the leading independent telecom tower company in Indonesia.
Realising the vision
In early 2008, Protelindo continued its expansion and won the bid to acquire 3,692 telecom towers from PT Hutchison CP Telecommunications (Hutchison). Under the deal, Hutchison will be the anchor tenant on the...
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