Econ dumps Indonesian telecom deal<\/p>\n
SINGAPORE (Reuters): Singapore's Econ International Ltd (Econ)
\nsaid yesterday it was scrapping a US$66.65 million deal with
\nIndonesian telecommunications firm PT Centralindo because of
\nSoutheast Asia's economic crisis.<\/p>\n
\"The region has experienced extreme volatility in the value of
\nits currencies in recent months with resultant impacts on their
\neconomies,\" Econ said in a statement.<\/p>\n
\"As such, the directors are of the view that the company
\nshould not proceed with the Centralindo transaction under the
\noriginal terms and hence the transaction has been aborted,\" it
\nsaid.<\/p>\n
Econ signed conditional agreements on October 20 to subscribe
\nfor $66,65 million exchangeable notes that could be exchanged for
\na 31-percent stake in Centralindo.<\/p>\n
It was also granted an option to buy either a nine percent
\nstake n Centralindo for $19.35 million or subscribe for
\nadditional notes for that amount.<\/p>\n
Centralindo has a mobile cellular license and Econ said at the
\ntime that was its great attraction.<\/p>\n
Indonesia has suffered worst in the region's crisis and has
\nagreed to wide-ranging economic reforms in return for a $43
\nbillion rescue package put together by the International Monetary
\nFund.<\/p>\n
Indonesia's rupiah has dropped more than 75 percent against
\nthe U.S. dollar since July.<\/p>",
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