Malaysian company makes bid for Excelcomindo<\/p>\n
Bloomberg, Kuala Lumpur<\/p>\n
Telekom Malaysia Bhd., Malaysia's biggest phone company, has
\nsubmitted a non-binding bid for PT Excelcomindo Pratama,
\nIndonesia's third-largest cellular phone operator.<\/p>\n
"If both parties are willing, there is a chance" the deal
\nmay proceed, Chief Executive Md Khir Abdul Rahman told reporters.
\n"It's a non-binding agreement, so you shouldn't read too much
\ninto this."<\/p>\n
Excelcomindo, which has 1.8 million subscribers in the fourth-
\nmost populous country, would give Telekom access to a market of
\n212 million people where about one in 20 owns a mobile phone,
\nagainst a third of the 24 million in its home base.<\/p>\n
A winning bid may offer Telekom Malaysia its best chance to
\ngain access to Indonesia's fast-growing cellular phone market
\nafter missing out when Singapore-government owned companies paid
\nmore than US$1.7 billion over the past 18 months to buy stakes in
\nthe country's No. 1 and No. 2 mobile phone companies.<\/p>\n
Telekom Malaysia, which is being advised by Citigroup Inc.,
\nis yet to complete due diligence on PT Excelcomindo Pratama.<\/p>\n
Excelcomindo is valued at about $650 million, based on the
\n$325 million PT Indonesian Satellite Corp. paid last year to buy a
\nquarter of its mobile unit from Deutsche Telekom AG.<\/p>\n
PT Telekomindo Primabhakti of the Rajawali Group, founded by
\nbusinessman Peter Sondakh, owns three-fifths of Excelcomindo.
\nOther shareholders include Asian Infrastructure Fund and Mitsui &
\nCo. Ltd.<\/p>\n
Telekomindo plans to sell as much as half of the company,
\npeople familiar with the transaction said last month. Malaysian
\nbillionaire Ananda Krishnan may also bid for Excelcomindo, pitting
\nhim against Telekom Malaysia, already his main domestic cellular
\nrival, the people said.<\/p>\n
Morgan Stanley is advising Telekomindo.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/malaysian-company-makes-bid-for-excelcomindo-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }