REPUBLIKA.CO.ID, JAKARTA -- State owned telecommunication company, PT Telekomunikasi Indonesia Tbk (Telkom) has completed the sale of 49 percent shares of its subsidiary, PT Dayamitra Telecommunication (Mitratel) to PT Tower Bersama Infrastructure Tbk (TBIG). Both companies have signed an agreement on Friday.

As the result, Telkom will acquire 290 million TBIG shares or 5.7 percent of TBIG's capital after the issuance of new shares. After completing the initial phase of stock exchange, the listed tower operator will control Mitratel management and consolidate the company's financial statements.

"This partnership is a very important achievement of TBIG," CEO TBIG, Hardi Wijaya Liong said on Friday.

In addition, Telkom has another option to redeem the 51 percent remaining shares in Mitratel in next two years with the additional of 472.5 million new shares of TBIG. Thus, Telkom ownership in TBIG will be 13.7 percent of capital after the issuance of new shares.

Telkom will also receive additional cash payment up to 1.739 trillion IDR if Mitratel can achieve the target that has been approved previously. This transaction is estimated to be completed in the fourth quarter of the year.

Telkom has plans to become the largest tower operator in Indonesia. Company looked to acquire a majority stake in a listed tower operator since early 2013. TBIG is one of the two leading independent tower operators in Indonesia beside Indosat.

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