Telkom finalizes initial public offering plan<\/p>\n
JAKARTA (JP): State-owned domestic telecommunications operator
\nPT Telekomunikasi Indonesia (Telkom) finalized yesterday its plan
\nto go public later this year, concentrating on the offer of a
\nmajor portion of its shares in the United States.<\/p>\n
Minister of Tourism, Post and Telecommunications Joop Ave told
\nreporters after an extraordinary meeting of Telkom's shareholders
\nat his office yesterday that the meeting had accepted the
\ncompany's financial audit report, which had been adjusted to the
\nprinciples of the Generally Accepted Accounting Practices (GAAP)
\nset by the United States.<\/p>\n
\"We found differences between the systems used by GAAP and the
\nState Audit Agency (BPKP). We have to use GAAP system because we
\nplan to list a major part of Telkom's shares in the United
\nStates,\" he said.<\/p>\n
Joop, however, declined to give more details about Telkom's
\ninitial public offering on the New York Stock Exchange (NYSE).
\n\"It's up to the minister of finance to provide further
\ninformation,\" he said.<\/p>\n
Minister of Finance Mar'ie Muhammad said last month that
\nTelkom was ready to float its shares on the New York and London
\nstock exchanges as well as on the domestic capital market.<\/p>\n
Joop said that the meeting had also agreed to adjust Telkom's
\nbasic guidelines, allowing its board of commissioners and its
\nboard of directors to perform their duties with greater
\nflexibility.<\/p>\n
\"Telkom is entering global competition and it has to work and
\ntake decisions quickly,\" he said.<\/p>\n
Analysts believe that the government still burdens state-owned
\nfirms with certain missions. They argue that state firms need
\nmore freedom in management and more qualified managers to make
\nthemselves competitive and efficient.<\/p>\n
Meanwhile, Telkom's president, Setyanto P. Santosa, said
\nyesterday that the company's management should be more flexible
\nbecause it will be owned by the public.<\/p>\n
Telkom will be the country's second state-owned company to
\nfloat its shares internationally, after Indosat, the
\ninternational telecommunications operator.<\/p>\n
Last year, Indosat made its debut on the NYSE, netting US$799
\nmillion from the sale of 25 percent of its 1.03 billion ordinary
\nshares. It also generated approximately Rp 650 billion from the
\nsale of another 10 percent of its shares on the local market.
\nNearly $782.9 million of the proceeds of the stock divestment
\nfrom Indosat was used to repay loans carrying interest rates of
\nmore than 10 percent.<\/p>\n
The government has appointed global coordinators for Telkom's
\npublic offering, including three U.S. investment banks -- Merrill
\nLynch, Goldman Sachs and Lehman -- as well as S.G. Warburg of
\nBritain.<\/p>\n
Joop said yesterday that Telkom would have good prospects in
\nthe share offering later this year, even though two other
\ntelecommunications firms, from Spain and Holland, will also be
\nlaunching second offerings on European and U.S. stock exchanges.
\n(icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-finalizes-initial-public-offering-plan-1447893297",
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"sponsor": "Okusi Associates",
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