HK's First Pacific mulls RI expansion<\/p>\n
HONG KONG (Dow Jones): First Pacific Co. said Monday that it
\nis considering increasing its presence in the Indonesian mobile
\ntelecommunications market.<\/p>\n
The Hong Kong-based conglomerate already owns a 35 percent
\nstake in Indonesian cellular operator PT Metro Selular Nusantara,
\nor Metrosel, and company officials said they're engaged in
\ndiscussions that could turn Metrosel into a national player.<\/p>\n
\"Metrosel needs a nationwide platform to compete with other
\nnational (telecommunications) operators,\" First Pacific managing
\ndirector Thomas Yasuda told a press conference.<\/p>\n
Metrosel currently provides cellular telecommunications
\nservices in Central and East Java.<\/p>\n
Yasuda said that First Pacific's options include boosting its
\ninvestment in Metrosel to expand its network coverage, or
\npursuing national cross-branding agreements with other Indonesian
\nmobile operators in other provinces.<\/p>\n
Telecommunications accounted for a significant chunk of First
\nPacific's net profit in the just-ended half year period, bringing
\nin US$16.7 million of the US$113.1 million total.<\/p>\n
The company said it is optimistic about the performance of the
\nsector in the second half, especially once an alliance among
\nNippon Telegraph & Telephone Corp., Philippine Long Distance
\nTelephone Co. and Smart Communications Inc. is completed. First
\nPacific has a majority stake in the last two companies.<\/p>\n
On the China front, China United Telecommunications Corp., or
\nChina Unicom, has initiated talks with First Pacific over
\ntermination of their ventures and subsequent compensation.<\/p>\n
First Pacific has invested in Shenzhen Merchant Link, a GSM
\nmobile network, and Fujian Telecom, but Beijing last month banned
\nthe so-called \"China-China-Foreign\" ventures, a convoluted
\narrangement between Chinese entities and foreign companies
\ndesigned to circumvent mainland policy allowing only domestic
\nplayers to operate mobile networks.<\/p>\n
We are confident that China Unicom will be fair in the
\nresolution of the matter,\" said Yasuda, adding that he cannot
\npredict when the resolution will be reached.<\/p>\n
The Chinese authorities recently set the end of September as
\nthe deadline for China Unicom to terminate its telecommunications
\njoint ventures with foreign companies, which include Hong Kong
\nconglomerates New World Development Co. and First Pacific.<\/p>\n
\"For Fujian and Shenzhen, the growth of business has been
\nquite remarkable and we'd like to have that continue,\" Yasuda
\nsaid.<\/p>\n
Last month, shareholders of First Pacific Co. approved the
\nconglomerate's plans to take a 40 percent stake in PT Indofood
\nSukses Makmur, the world's biggest instant noodles maker, for
\nUS$621 million.<\/p>\n
Yasuda said he expects the transaction to go through very
\nsoon. He also said the focus for the instant noodles company in
\nthe second half is to speed up the sale of its flour mill
\noperator, PT Bogasari Flour Mills, and to gain greater presence
\nin the region.<\/p>\n
\"Indofood will be seen as the best acquisition First Pacific
\nhas ever made\" when the political unrest in Indonesia settles,
\nsaid Yasuda.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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