Indonesia Tower Firm STP’s Owners Revive $1 Billion Sale

The owners of PT Solusi Tunas Pratama are reviving the sale of a majority stake in the Indonesian telecommunication tower operator that could give it a valuation of at least $1 billion, according to people with knowledge of the matter.

Buyout firms Carlyle Group Inc. and Southern Capital Group are working with an adviser on the potential divestment, said the people, who asked not to be named as the discussions are private. Singapore’s Southern Capital indirectly controls about 43% of STP while Carlyle has roughly 26%, one of the people said.

The private equity investors considered selling their stakes in 2017, the person said. They are reviving the sale following rising interest in digital infrastructure such as telecom towers and data centers, they said. The planned sale comes after Ooredoo QPSC’s Indonesian unit PT Indosat agreed on Tuesday to sell more than 4,200 towers to Digital Colony for $750 million.

STP, founded in 2006, operates telecom tower assets in all 34 provinces in Indonesia, the majority of them in Java and Sumatra, according to its website. Shares of the Jakarta-listed company have risen 20% this year, giving it a market value of 5.6 trillion rupiah ($384 million).

Deliberations are ongoing and the firms could decide to keep their stakes, said the people. A representative for Carlyle declined to comment. Representatives for Southern Capital and STP did not immediately respond to requests for comment.

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