Ooredoo QPSC’s Indonesian unit PT Indosat agreed to sell more than 4,200 towers to Digital Colony for $750 million, the latest acquisition by the company which is amassing telecom infrastructure across Asia.
Indosat said in a statement late Tuesday that it signed the sale and leaseback deal with EPID Menara AssetCo, a unit of Edgepoint Infrastructure in Indonesia that is fully owned by Digital Colony, confirming an earlier Bloomberg News report. The deal, which will require Indosat to lease the towers for 10 years, is expected to close in the second quarter.
The agreement comes weeks after Indosat said it was in the early stage of exploring the sale without naming any potential buyers. Digital infrastructure, including telecom towers, data centers and fiber, has become a hot spot for investments amid global technology rollouts.
Digital Colony has been an active player in the consolidation of telecom infrastructure in Asia and Edgepoint could amass 20,000 to 50,000 towers in the next five to seven years, a person familiar with the matter said in November.
Qatar’s Ooredoo, which owns a 65% stake in Indosat, said in December it was in talks with CK Hutchison Holdings Ltd. to combine their Indonesian wireless phone businesses as part of a consolidation to fend off competition in Southeast Asia’s biggest market by subscribers.