DigitalBridge, through its private equity fund Digital Colony Partners II, and particularly, portfolio company EdgePoint Infrastructure, has increased its stake in Indonesia’s publicly-traded tower company Centratama, becoming the company’s largest shareholder, with a 76.8% ownership interest. Specifically, EdgePoint Infrastructure’s entity EP ID Holdings Pte Ltd purchased 10.3 billion shares in Centratama from the entity Clover Universal Enterprise Limited, which is a vehicle of Singapore-headquartered private equity firm, Northstar Group.

Centratama Ownership – DigitalBridge’s EdgePoint and Northstar

As part of this transaction, EdgePoint Infrastructure, via EP ID Holdings, purchased a 33.0% ownership interest in Centratama from Northstar Group (i.e., a secondary share sale). Specifically, the transaction resulted in the following ownership transfer:

  • EdgePoint Infrastructure: 76.8% ownership of Centratama as of July 31, 2021, up from 43.8% as of June 30, 2021
  • Northstar Group: 14.9% ownership of Centratama as of July 31, 2021, down from 47.9% as of June 30, 2021

Based on EdgePoint Infrastructure’s purchase price of 198 Indonesian Rupiah per share, the secondary share sale from Northstar Group to EdgePoint Infrastructure was valued at $140.7m USD (2.0 trillion Indonesian Rupiah).

As of July 31, 2021, various public investors hold the remaining 8.3% of Centratama shares.

Pre-Emptive Rights Issue – Postponed

In late April 2021, Centratama postponed its decision to issue 12.7 billion new shares through a pre-emptive rights issue. However, the company notes that it will re-evaluate this pre-emptive rights issue plan in the second-half of 2021.

Extraordinary General Meeting of Shareholders – Centratama

Centratama’s Board of Directors announced in early August 2021 that the company will hold an Extraordinary General Meeting of Shareholders on September 9, 2021. Centratama notes that it will announce the meeting’s agenda via the Indonesia Stock Exchange and the company’s own website on August 18, 2021.

While no agenda is currently available, a number of possible reasons exist for Centratama to call this meeting. For example, DigitalBridge’s EdgePoint Infrastructure could propose a tender offer for all shares of Centratama that it does not already own. Alternatively, Centratama could re-visit its previously postponed pre-emptive rights issue.

Towers and DAS Portfolio – Centratama

As of Q1 2021, Centratama manages 3.8k towers across Indonesia, which have a 1.59x tenancy ratio. Additionally, the company operates 864 in-building distributed antenna system (DAS) sites with a 1.79x tenancy ratio. In total, Centratama’s portfolio comprises 4.7k towers and DAS sites.

Towers and DAS – Sites, Tenants, Tenancy Ratio

Centratama Historical Towers DAS Sites Tenants Tenancy Ratio

EdgePoint Infrastructure – DigitalBridge in Southeast Asia

DigitalBridge’s EdgePoint Infrastructure has amassed a portfolio of 10.0k+ sites, including Centratama, which comprises:

  • Indosat Ooredoo: 4.2k towers in Indonesia through a sale-and-leaseback transaction
  • Centratama: 4.7k towers and DAS sites in Indonesia, through its 76.8% ownership interest
  • Asiaspace: 178 towers in Malaysia by purchasing the company’s towers
  • Undisclosed: ~1.0k+ towers in Malaysia through two transactions that have not yet been disclosed
Adam Simmons is the Founder & CEO of Dgtl Infra. He started his career with an S&P 500-listed big box retailer, in an operations management role. Adam's entrepreneurial "itch" led him to start a 5G-driven company, focused on innovative retail solutions using augmented reality and shoppable videos, which was eventually sold to an advertising and consulting group. After, realizing the potential of 5G, Adam shifted his efforts towards investing in the "building blocks" of 5G - known as digital infrastructure, completing a number of strategic investments, buying cellular towers, data centers and fiber networks.

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