In a breaking news story, BNN Bloomberg are reporting that state-owned phone carrier PT Telkom Indonesia is considering introducing investors to its data centre business amid increasing interest for digital infrastructure assets, according to people familiar with the matter.
The Jakarta-listed telecom giant has held initial talks with prospective investors and could seek a valuation of more than USD 1-billion for the operation in a deal, according to Bloomberg’s reporting.
Options under consideration include selling a minority stake in the data centre unit. The company said last year it was planning an initial public offering for the business in 2023.
Apparently, discussions are at an early stage and might not lead to any transactions. Telkom hasn’t decided whether it will introduce investors to, or hold an IPO for, the data centre operation, President Director Ririek Adriansyah said in response to a Bloomberg News query, adding that the business could be valued at about 25-times Ebitda.
“We will see how our data centre consolidation and development progresses,” he said in a text message. “We will also need to look at the macro conditions before deciding on the right scenario.”
Global investment funds are keen for digital infrastructure assets in Southeast Asia, which has seen rising demand for e-commerce and financial technology services. Beyond Indonesia, the Philippines has also turned into a hot spot for deals in assets such as mobile phone towers and data centres.
Telkom, which has a market value of about USD 28-billion, has been looking into reorganizing and monetizing its wide-ranging assets from mobile and broadband, to satellites and digital content.
The company is considering a merger of its broadband and wireless businesses, a move that would create an entity valued at more than USD 30-billion, Bloomberg News has reported.
Banks including Goldman Sachs Group Inc. and PT Bank Mandiri have been tapped to work on the deal, people familiar with the matter have said.
Telkom’s infrastructure services unit, known as Mitratel, raised about IDR 18.8-trillion (approx. USD 1.2-0billion) in a Jakarta initial public offering in November last year.
Source: BNN Bloomberg