NEWS & EVENTS

 

PT Profesional Telekomunikasi Indonesia Announces the Signing of a MOU for Protelindo to Acquire 1,000 Telecommunication Towers from PT Hutchison CP Telecommunications in Indonesia

Jakarta, December 7, 2010 | Source: Company

Transaction valued at US$110 million

PT Profesional Telekomunikasi Indonesia ("Protelindo"), a 99.999% owned subsidiary of PT Sarana Menara Nusantara Tbk. ("SMN") has entered into a memorandum of understanding ("MOU") with PT Hutchison CP Telecommunications ("HCPT") which sets forth the agreed commercial terms for the sale of 1,000 of HCPT's towers in Indonesia to Protelindo. The purchase price for each tower is US$110,000. HCPT will lease these towers back from Protelindo for an initial term of 10 years (the 1,000 towers sale and lease back transaction described in the MOU is referred to below as the "Transaction").

The Transaction is subject to negotiation and execution of formal agreements for the transfer and lease back of the towers. The parties expect to complete the transfer of all 1,000 towers by the end of 2012. Protelindo intends to finance the Transaction with bank debt and cash generated from operations.

Protelindo and HCPT intend to structure the Transaction agreements on substantially similar terms as the Tower Transfer Agreement and Master Lease Agreement executed by the parties in March 2008 pursuant to which Protelindo acquired over 3,600 towers from HCPT.

Upon completion of the Transaction, Protelindo's portfolio of towers will exceed 6,000 towers located throughout Indonesia, furthering Protelindo's market position as the largest independent owner and operator of telecommunication towers in Indonesia.

This announcement has been made in the framework of the compliance with the Bapepam-LK Rule no X.K.1. on Disclosure of Information that must be made to public immediately.


Cautionary Statement

This announcement is not for distribution in the United States. This announcement and the information contained herein is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration pursuant to the U.S. Securities Act of 1933, as amended, or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from SMN and that will contain detailed information about SMN and management, as well as financial statements.

This announcement contains "forward-looking statements" that involve a number of risks and uncertainties. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. You should be aware that certain factors may affect us in the future and could cause actual results to differ materially from those expressed in our forward-looking statements. Forward-looking statements are based on current beliefs, assumptions and expectations and speak only as of the date of this release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.