MGTI gets $215 million loan facility<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
A group of banks led by DBS Bank in Singapore has agreed to
\nprovide a multimillion dollar loan facility to
\ntelecommunications company PT Mitra Global Telekomunikasi
\nIndonesia (MGTI) to refinance the latter's existing debts.<\/p>\n
In a press release, DBS Bank and state-owned Bank Mandiri are
\ncoordinating arrangers for the US$215 million, five-year loan
\nfacility for the telecom company.<\/p>\n
No details were available on the amount of MGTI's existing
\ndebts.<\/p>\n
"The fact that eight leading names in the financial community
\nhave committed to this syndicate is testimony to the growing
\nconfidence in Indonesia's economy and growth prospects," Brent
\nSmith, DBS Bank managing director and co-head of investment
\nbanking said in the statement.<\/p>\n
Other participating banks are ABN-AMRO, Bank Danamon, DBS Bank
\nIndonesia, Bank Internasional Indonesia, ING Bank and Rabobank
\nInternational Indonesia.<\/p>\n
MGTI is developing some 730,000 telecom fixed lines in Central
\nJava in partnership with state-owned telecommunications firm PT
\nTelkom. In return, MGTI gets a 30 percent share of the revenue
\nfor 15 years until 2010.<\/p>\n
In September last year, all MGTI's shareholders, which include
\nTelkom's rival state-owned telecommunication firms PT Indonesian
\nSatellite Corp. (Indosat), Widya Duta Infotel, Telstra Global
\nLtd, NTT Finance and Sumitomo Corporation, agreed to sell their
\nentire stake to PT Alberta Telecommunication (Alberta) for a
\ntotal $266. The acquisition was completed on Tuesday.<\/p>\n
MGTI was one of Telkom's five joint operating partners in
\ndeveloping telecom fixed lines in the country. But the
\npartnership scheme collapsed following the 1997 financial crisis.<\/p>\n
Telkom has managed to buy out four joint-venture operations
\nduring the past few years, but was unable to take over MGTI due
\nto a disagreement over valuation.<\/p>\n
Telkom reportedly valued the company at $250 million, which
\nwas unacceptable to MGTI shareholders.<\/p>\n
Telkom now has to negotiate the future of MGTI with the new
\nshareholder, Alberta, which is a subsidiary of PT Saratoga
\nInvestama Sedaya. Saratoga is controlled by Indonesian business
\ntycoon Edwin Soeryadjaya.<\/p>\n
Saratoga has a capitalization of about $32 million in the form
\nof common equity and subordinated debt.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mgti-gets-215-million-loan-facility-1447893297",
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"sponsor": "Okusi Associates",
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