PT Inti Bangun Sejahtera Tbk (IBST) stated that the plan to sell 3000 telecommunication towers and lease 32 lands or lands to PT Tower Bersama Infrastructure Tbk worth Rp3.98 trillion would boost net profit margin for the current year to 24.2% from 10.3%.

Referring to IBST's brief prospectus, on Monday (29/3), in addition to the growth in net profit margins, net profit for the current year will also increase from Rp. 86.26 billion to Rp201.56 billion, with the ratio of return on assets growing to 2.4% from 0.82%.

The company will record a profit on the sale of fixed assets, in addition to other income for the current year of Rp226.82 billion. 
And, there will be an additional retained profit for the financial year of up to Rp1.49 trillion.

If the transaction plan completes, the company will use the proceeds from the tower sale to pay off part of the bank's debt of around Rp1.5 trillion and the remaining Rp2.7 trillion to support its business development.

This partial debt repayment will reduce the recorded liabilities to Rp3.08 trillion and the debt-to-equity ratio to 0.49.

Currently, the company pledges most of the towers it sells to PT Tower Bersama Infrastructure Tbk as collateral to PT Bank Syariah Indonesia Tbk and PT Bank Mandiri (Persero) Tbk.

The company is pledging the tower for sale as collateral. The collateral will be released before or after the sale transaction under the asset sale and purchase agreement.

Meanwhile, the transaction value is equivalent to 64% of the company's equity-based on the report for the period ending September 30, 2020, namely Rp6.22 trillion.