MTEL - Sets to acquire 997 towers

Dayamitra Telekomunikasi (MTEL) is closing a deal for 997 towers acqusition from Indosat Ooredoo Hutchison (ISAT) with transaction value of IDR1.6 tn, bringing the number of total towers owned stands at 35,800. The acqusition is part of capital expenditure spending plan this year. MTEL is targeting to build 1,000 new towers annually although the company is always open to idea of MNO tower acquisition. (Source: Investor) Comment: The latest acquisition has made MTEL to be the largest tower provider in Southeast Asia, whose strong growth is mostly propped up by inorganic growth thanks to its affiliation with Telkomsel. Furthermore, the continued acquisition of towers is made possible thanks to robust leverage profile compared to peers.