Telkom, Indosat finalize $1.5-billion telecoms deal<\/p>\n
JAKARTA (JP): State telecommunication firms PT Telkom
\nIndonesia and PT Indonesia Satellite Corporation (Indosat) said
\nthey had signed the final agreement to end their cross ownerships
\nin three of their subsidiaries.<\/p>\n
\"Today we announce that we have signed conditional definitive
\nSale and Purchase Agreements,\" a joint statement of the two
\ncompanies said on Wednesday.<\/p>\n
The announcement shrugged off market worries that both
\ncompanies would delay signing the US$1.5 billion deal, due to the
\nsharp depreciation of the rupiah.<\/p>\n
Under the deal, Telkom would pay $945 million, and Indosat
\n$599 million to exchange ownerships in their subsidiaries.<\/p>\n
However, since they signed the memorandum of understanding on
\nthe deal in February, the rupiah took a steady downward course.<\/p>\n
The local unit came down to breach the Rp 10,000 level against
\nthe U.S dollar from its February position at over 9,000.<\/p>\n
On Monday, stock investors dumped Telkom and Indosat shares
\nover fears both companies would postpone signing the deal,
\nbecause it might be considered too expensive.<\/p>\n
The agreement itself is seen as vital to the two companies'
\nrestructuring efforts, and for opening the industry to foreign
\ninvestors.<\/p>\n
Under the deal, Telkom would acquire Indosat's 35 percent
\ninterest in the country's biggest cellular phone operator, PT
\nTelekomunikasi Selular (Telkomsel), for a value of $945 million.<\/p>\n
The move would boost Telkom as the majority shareholder in
\nTelkomsel with a stake of 70 percent.<\/p>\n
Indosat for its part, would spent $186 million for acquiring
\nTelkom's 22.5 percent stake in the second largest cellular
\noperator, PT Satelit Palapa Indonesia (Satelindo).<\/p>\n
For the $375 million, Indosat also agreed to buy Telkom's
\nfixed line assets at its joint operation scheme IV, covering the
\nregion of Central Java and Yogyakarta.<\/p>\n
The remaining $38 million would be used by Indosat to purchase
\n37.66 percent stake in PT Aplikanusa Lintasarta from Telkom.<\/p>\n
Shortly after the MOU, Indosat further announced plans to
\nraise its stake in Satelindo to 75 percent.<\/p>\n
This is done through Indosat acquiring a 100 percent stake in
\nPT Bimagraha Telekomindo, which controls 45 percent of Satelindo.<\/p>\n
Analysts noted that Indosat's move to control Satelindo
\nunderlined its bid to compete against Telkom in the cellular
\nphone market.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/telkom-indosat-finalize-15-billion-telecoms-deal-1447893297",
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"sponsor": "Okusi Associates",
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