DUBAI, March 26 (Reuters) - Indonesia’s second-largest telecom operator, PT Indosat, has agreed to sell its 5 percent stake in PT Tower Bersama Infrastructure Tbk for $122 million, Indosat’s parent firm Ooredoo said on Wednesday.
Indosat will sell 239.83 million shares to institutional investors in a book build offering at a price of 5,800 rupiahs ($0.51) per share, according to an Ooredoo statement.
“Indosat’s exit from PT Tower Bersama frees up capital to deploy in the business, paying down outstanding debt, supporting our on-going capital investment plans in Indonesia and for general corporate purposes,” Nasser Marafih, chief executive of Qatar’s Ooredoo, said in the statement.
Merrill Lynch is acting as sole placement agent on the Tower Bersama stake sale and CLSA Singapore is co-lead manager.
In 2012, Indosat sold 2,500 towers to Tower Bersama for $406 million.
Ooredoo’s Indonesia operations made a loss of 849.8 million riyals ($233.37 million) in 2013. This compares with a profit of 223.2 million riyals a year earlier. ($1 = 11392.5000 Indonesian Rupiahs) ($1 = 3.6415 Qatar Riyals) (Reporting by Matt Smith in Dubai; Editing by Stephen Powell)