Going public won't affect Telkom management: Setyanto<\/p>\n
BANDUNG, West Java (JP): Chief Executive of PT Telekomunikasi
\nIndonesia (Telkom) Setyanto Prawira Santosa ensures that foreign
\ninvestors holding the company's shares will not affect its
\nmanagement and policy after the share sales planned for next
\nmonth.<\/p>\n
Setyanto said in his last road-show presentation on the
\ncompany's privatization program here over the weekend that the
\nfirm's statutes do not allow the changing of its policy and
\nmanagement, particularly its boards of executives and
\ncommissioners, without approval from the holder of its golden
\nshares, called Series A shares.<\/p>\n
He said the government will keep the firm's golden shares,
\nwhich represent one percent of total shares.<\/p>\n
\"The statute stipulates that any decision and changing of
\nmanagement should get approval from the holder of the golden
\nshares,\" he said.<\/p>\n
The Bandung-based Telkom, which will sell its shares to the
\npublic domestically and overseas next month, conducted domestic
\nroad-shows in Jakarta, Surabaya, Medan, Semarang and Bandung last
\nweek to promote the share sales.<\/p>\n
Overseas road-shows will be held in New York, London and Tokyo
\nat the end of this month.<\/p>\n
The shares will be listed on stock exchanges in New York,
\nLondon, Jakarta and Surabaya. They will also be offered in Tokyo
\nwithout being listed there.<\/p>\n
Telkom expects to collect about Rp 6 trillion (US$2.6 billion)
\nfrom the share offering, of which 39 percent will be used to
\nfinance network expansion and modernization and the installation
\nof submarine fiber optic lines connecting areas in the eastern
\npart of the country.<\/p>\n
Setyanto confirmed that the money to be raised from the share
\nsales will not be used to repay debts.<\/p>\n
\"Telkom will repay its long-term foreign loans with its
\noperational revenues, not with the money to be generated from the
\nshare sales,\" said Setyanto.<\/p>\n
The company's director of finance, Moelyohardjoko,
\nacknowledged at the presentation here that Telkom owes Rp 580
\nbillion to domestic creditors.<\/p>\n
A source said that Telkom plans to float about 25 percent of
\nits shares overseas and another 10 percent domestically next
\nmonth. (pet\/kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/going-public-wont-affect-telkom-management-setyanto-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}