Foreign telecoms start bidding for PT Indosat

JAKARTA (JP): A number of major foreign telecommunications companies have passed the initial stage in the bidding process for shares in international telecommunications provider PT Indosat, the Office of the State Minister of the Empowerment of State Enterprises announced on Monday.

The telecommunications operators will participate in the due diligence and management presentation prior to the submission of final bids in the second half of March, the office said.

"The telecommunications operators selected are all publicly listed companies," it said. The office did not disclose the names of the companies.

According to the latest issue of Finance Asia magazine, France Telecom, British Telecom and Australian Telstra are interested in Indosat.

"Finding the right strategic partner will be another milestone for Indosat's development in enhancing our position for expected global competition...," Indosat president Tjahjono Soerjodibroto said.

The government holds 65 percent of Indosat's outstanding shares and has plans to sell more and reduce its ownership to 51 percent.

Indosat went public in 1994 and is listed on the Jakarta, Surabaya and New York Stock exchanges.

It has appointed Goldman Sachs and state-owned securities firms PT Bahana and PT Danareksa as financial advisors for Indosat's privatization.

The government raised some US$114.6 million from its first privatization deal in September last year, in which it sold 14 percent of publicly listed cementmaker PT Semen Gresik to Mexico's Cemex SA de CV.

Indosat is one of seven state-owned companies named in the government's privatization program for the fiscal year ending in March 1999 in a bid to raise $1 billion to help finance the state budget deficit.

Other state-owned companies currently in the selling process are port operators PT Pelindo II and PT Pelindo III, plantation company PT Perkebunan IV, airport operator PT Angkasa Pura II and publicly listed mining company PT Aneka Tambang. (02)