Satelindo to launch IPO mid-2002<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Cellular operator PT Satelindo will float its shares via an
\ninitial public offering (IPO) by the middle of next year and was
\nexpected to earn US$75 million in cash to help finance the
\nexpansion of its network, a senior official said on Wednesday.<\/p>\n
Budi Prasetyo, director of operations at Satelindo's parent
\ncompany PT Indosat, said that the funds were needed to upgrade
\nSatelindo's services and increase competitiveness.<\/p>\n
Under a $430 million debt restructuring agreement with its
\ncreditors last year, Satelindo was not allowed to invest more
\nthan $50 million a year, causing the company to lag behind its
\ncompetitors, Reuters reported.<\/p>\n
Budi said, however, that the planned IPO would depend largely
\non market conditions, and if the plan fell through, Satelindo
\nwould choose between offering its shares to certain institutions
\nor an equity injection by Indosat of at least $75 million.<\/p>\n
Whatever option it takes, it must be settled before July when
\nsome of Satelindo's debts mature, Budi said.<\/p>\n
Indosat owns 75 percent of Satelindo and the remainder is
\nowned by Deutsche Telekom. Both parties had agreed to put more
\nmoney into Satelindo if needed, or let their capital be diluted
\nfrom a fresh capital injection.<\/p>\n
Satelindo, Indonesia's second largest cellular operator, has
\nmore than 1.5 million subscribers and is targeting three million
\nsubscribers in 2002.<\/p>",
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