TOWR - Subsidiary to acquire stakes in ATMI

A subsidiary of Sarana Menara Nusantara (TOWR), iForte, has signed a Share Subscription Agreement with PT Abadi Tambah Mulia Internasional (ATMI), on 21 December 2022 to acquire 23.72% of the Company through the issuance of new shares. The transaction value is IDR249 bn. In addition, it also signed a Joint Venture Agreement with the other shareholders of ATMI, Seven Bank Ltd, Sociofuture Ltd and Alto Network, for the operation of the Company. (Source : Company) Comment: TOWR's move through its subsidiary is a sign of its continued diversification and further cement its positioning as a digital infrastructure provider. By acquiring stakes, it will unlock potential synergy between iForte, which is fiber arm of TOWR, and ATMI. We like TOWR over its expansion move on fiber assets amid consolidation phase in its main tower business. TOWR is currently trading at attractive valuation with '23 EV/EBITDA of 10.1x, or slightly below 5-yr historical.