Indosat plans for acquisitions<\/p>\n
JAKARTA (JP): State Minister of the Empowerment of State
\nEnterprises Tanri Abeng said here Saturday that publicly listed
\nPT Indosat was considering making some acquisitions in an effort
\nto boost its value before further divestment of government stakes
\nin the state-owned international telecommunications provider.<\/p>\n
"Three possible (acquisition) targets are being considered,"
\nhe said on the weekend after attending President B.J. Habibie's
\nstate of the nation address.<\/p>\n
He declined to provide details because "it would not be fair".<\/p>\n
He also dismissed any possibility of acquiring publicly listed
\ndomestic telecommunications company PT Telkom.<\/p>\n
"Acquiring Telkom is not an alternative at the moment," he
\nsaid.<\/p>\n
He also said Indosat would seek facilities from the country's
\ntelecommunications regulator as part of its value creation
\nstrategy.<\/p>\n
"This will include restructuring the country's
\ntelecommunications industry and rates," he said.<\/p>\n
Tanri said earlier that Indosat's current market
\ncapitalization value of less than US$1 billion would have to be
\nboosted first to between $2 billion to $2.5 billion before
\nfurther divestment of the government's stake by 20 percent to 30
\npercent.<\/p>\n
Indosat is one of the 12 state-owned companies preparing for
\nprivatization this fiscal year to raise some $1.5 billion to help
\nsupport the state budget.<\/p>\n
The first to go on sale is cementmaker PT Semen Gresik, in
\nwhich a deal is expected this month.<\/p>\n
Telecom industry experts said Indosat may be eyeing
\ntelecommunications projects exclusively given to Telkom,
\nincluding telecom marine cable and satellite projects which could
\nnever get off ground because of the latter's financial
\ndifficulties. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosat-plans-for-acquisitions-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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