PT Profesional Telekomunikasi Indonesia (Protelindo) were declared the winner of the tender process to purchase the towers and the transaction will be completed entirely in cash, according to a stock exchange filing.
"This transaction also demonstrates the strength and discipline of XL in the transaction strategy and is one of several important transactions successfully conducted over the last two years," said Mohamed Adlan bin Ahmad Tajudin, CFO of XL Axiata.
Along with the signatories of the asset purchase agreement, XL and Protelindo have also signed a master agreement where XL Tower Lease has agreed to lease back 2,432 towers from Protelindo for a period of 10 years.
XL Axiata, which presently serves more than 41.9 million subscribers throughout Indonesia, will use the proceeds to optimise its balance sheet.
The closing of the transaction is expected to run on or before June 30, 2016.
