Telkom appoints Morgan Stanley to advise on float<\/p>\n
JAKARTA (JP): State-owned PT Telekomunikasi Indonesia (Telkom)
\nhas appointed Morgan Stanley of the United States as its
\nfinancial advisor to support its plan to float shares on the New
\nYork, London and Jakarta stock exchanges by the end of this year.<\/p>\n
Telkom's president, Setyanto Santoso, said in a statement
\nreleased yesterday that Morgan Stanley will advise Telkom on its
\nlong-term business and financing plans as well as on
\ntelecommunication regulatory issues.<\/p>\n
\"Morgan Stanley will also advise the company on the valuation,
\npricing, structuring and syndication of the global offering,\" he
\nsaid.<\/p>\n
Morgan Stanley is a U.S. securities company providing a wide
\nrange of financial and advisory services to major corporations,
\ninstitutions and government entities as well as private
\ninvestors.<\/p>\n
Telkom announced last month that it had appointed Merrill
\nLynch, Goldman Sachs, both of the United States, as well as S.G.
\nWarburg of Britain as global coordinators for its share issuance.
\nFour local securities companies -- state-owned Danareksa, PT
\nMakindo, PT Bahana and PT Jardine Flemming Nusantara -- were
\nassigned to act as coordinators for the sales of its shares on
\nthe domestic exchanges.<\/p>\n
Setyanto said yesterday that Morgan Stanley will play a role
\nin advising Telkom and helping the company liaise with the three
\nglobal coordinators and four domestic underwriters.<\/p>\n
Director General for the Supervision of State Enterprises
\nMartiono Hadianto said last month that the \"team of seven\" -- the
\ngovernment's special team set up to prepare the privatization of
\nstate-owned companies -- had also appointed a number of
\ninternational bodies to support Telkom's public offering.<\/p>\n
They include Arthur Andersen of the United States as the
\nauditor and Baker & McKenzie as the legal consultant.<\/p>\n
Telkom's public offering will include the issuance of new
\nshares and the divestment of the government's stake. The funds to
\nbe raised from the divestment of the government's equity in
\nTelkom will be used to prepay its high-interest foreign debts.<\/p>\n
Telkom, which employs around 43,000 workers, recorded total
\nassets of around Rp 7 trillion (US$3.15 billion) as of last
\nDecember and a net profit of around Rp 418 billion last year.<\/p>\n
Martiono said that the average income growth of the company
\nreached around 20 percent in the last five years. (riz)<\/p>",
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