China Telecom eyes Excelcomindo: sources

China Telecom eyes Excelcomindo: sources

Dow Jones Hong Kong

China Telecom Group, parent of the Hong Kong-listed China Telecom Corp., is in preliminary talks to buy a stake in Indonesia's PT Excelcomindo Pratama, sources familiar with the situation said on Wednesday.

"It's just talks at the parent company level, not related to the listed unit," said one of the sources, who spoke on condition of anonymity.

"(The talks) are still s further evidence that mainland China's telecom giants are increasingly enthusiastic about expanding their customer base overseas.

China United Telecommunications Corp., China's second-largest mobile carrier and parent of China Unicom Ltd., is considering investing in a code division multiple access joint venture in a neighboring emerging market within the next two years, Chairman Wang Jianzhou said in August. Potential targets include Indonesia, India and Vietnam.

Back in January, China Netcom, the smaller of China's fixed- line duopoly, formed a consortium with two investment firms to take over the assets of Asia Global Crossing Ltd., an affiliate of bankrupt U.S. telecoms network operator Global Crossing Ltd.

Two weeks ago, Excelcomindo launched a Rp 1.25 trillion (US$148 million) five-year bond to raise funds to refinance some of its offshore borrowings and improve its network coverage. The Indonesian company has around 16 percent of the country's cellular market.

Excelcomindo shareholders are Indonesia's PT Telekomindo Primabhakti, which holds 60 percent, U.S.-based Verizon Communications, which holds 23.1 percent through Nynex Indocel Holding Sdn.; Asia Infrastructure Fund Ltd., with 12.7 percent; and Japan's Mitsui & Co. Ltd. with 4.2 percent.