MTEL - Acquires 803 new towers

MTEL - Acquires 803 new towers Dayamitra Telekomunikasi (MTEL) has acquired as many as 803 towers that worth IDR1.75 tn from Gametraco Tunggal, 70% of which are located in Sumatra. The acquisition also marks a handover of 1,327 tenants to MTEL. (Source: Kontan) Comment: The transaction will further strengthen MTEL's solid footprint in ex-Java area, where most of its tower sites located. We also expect the acquisition will improve its tenancy ratio to 1.51x compared to 1.50x in 9M23. On the other hand, we opine that the value of transaction that considered to be at premium (IDR2.1bn-IDR2.2bn/ tower) is quite understandable given its multi-tenancy nature.