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Leading Indonesian law firm Hiswara Bunjamin & Tandjung has advised Indonesia's state-controlled telecommunications company on the transfer of 798 telecoms towers to its subsidiary in exchange for shares.
State-controlled PT Telkom Indonesia (Persero) Tbk, known as Telkom, transferred the towers to PT Dayamitra Telekomunikasi, known as Mitratel, in exchange for 3.56 billion additional shares in its subsidiary.
This deal was challenging as it involved the transfer of state-owned assets, which is highly regulated. It was also deemed an affiliated party transaction from a capital markets regulatory perspective.
"We were pleased to be able to advise on this complex transaction, which will benefit both companies," said TMT partner Sakurayuki, who led the Jakarta-based team advising Telkom, supported by senior associate Randitya Adiguna.
"Telecommunications infrastructure is crucial to Indonesia's development, and projects such as this will help broaden coverage and connection in our nation."
Telkom is the largest telecommunication and network provider in Indonesia, majority owned by the government, and Mitratel is its telecommunication infrastructure subsidiary.
Mitratel is aiming to establish itself as a leading telecommunication infrastructure company in Indonesia. It is Indonesia's biggest tower operator with more than 28,000 telecom towers.