Policy-driven tower transactions

While consolidation in the tower space is usually triggered by competitive market conditions with too many players in the arena, some markets such as Bangladesh and the Philippines saw tower transactions driven more by governments and changes to regulation. Both countries have been pushing MNOs to separate tower infrastructure from the operators’ telecom business.

Meanwhile, Bangladeshi telcos Banglalink and Grameenphone have put their towers on the market and once the tower operating licence is issued by Bangladeshi regulator, tower M&A transactions are likely to be active and move forward in H2. Also in Philippines, Globe Telecom has tapped UBS as a financial adviser to sell its towers.

More generally, 2018 has been a big year so far for tower operators in Asia with big M&A transactions and IPOs. The largest towerco in the world, China Tower Corp, finally made its long awaited IPO debut and raised US$6.9bn from the listing, while India’s Indus Towers and Bharti Infratel agreed to merge and will create the world’s second largest towerco with an estimated equity value of US$14.6bn. One of the largest towercos in Southeast Asia, edotco, also kicked off plans for its IPO and mandated three banks on a potential US$1bn listing; while in Indonesia, Protelindo successfully acquired KIN, which brings Protelindo’s tower portfolio to 16,400 with over 5,300km of fibre optic cable.

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Published on 17.10.2018
Published on 17.10.2018
Published on 17.10.2018
Published on 17.10.2018