IBS Owner Weighs Options for Majority Stake in Indonesian Tower Firm

The owner of PT Inti Bangun Sejahtera is exploring options for their controlling stake in the Jakarta-listed telecommunication tower company amid strong demand for digital infrastructure in Southeast Asia, according to people with knowledge of the matter.

(Bloomberg) — The owner of PT Inti Bangun Sejahtera is exploring options for their controlling stake in the Jakarta-listed telecommunication tower company amid strong demand for digital infrastructure in Southeast Asia, according to people with knowledge of the matter.

PT Bakti Taruna Sejati, an investment vehicle controlled by IBS President Commissioner Farida Bau, is working with an adviser on a strategic review of its 80% stake in IBS, the people said. Options under consideration include selling a partial stake and an outright exit, the people added.

Bakti Taruna could seek a deal valuing the company at as much as $700 million, one of the people said, asking not to be identified as the information is private.

Shares of IBS have fallen around 8% in the year to date, giving it a market value of about $468 million. An 80% stake in the tower company is worth about $374 million based on the latest stock price.

Deliberations are preliminary and Bakti Taruna could still hold onto the asset for longer, the people said. Representatives for Bakti Taruna and IBS didn’t immediately respond to requests for comment.

Founded in 2006, IBS initially started with in-building mobile coverage services on 10 sites, according to its website. It later entered into the tower business through acquisitions and spun off the in-building business in 2012. In the same year, IBS raised about 154 billion rupiah ($10 million) in an initial public offering in Jakarta.

IBS sold as many as 3,000 telecom towers to a unit of PT Tower Bersama Infrastructure in 2021. It owned 3,383 telecom towers and 16,642 kilometers of fiber optic cable as of the end of 2022, according to its annual report.

–With assistance from Fathiya Dahrul.

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