Indonesia to sell Telkomsel shares via IPO

Indonesia to sell Telkomsel shares via IPO

Dow Jones, Jakarta

The government said on Monday it plans to divest its stake in
cellular phone company PT Telekomunikasi Selular Indonesia, or
Telkomsel, through an initial public offering in September or
October.

The government indirectly holds a stake in Telkomsel,
Indonesia's largest mobile phone company with around 5 million
subscribers, through 51 percent-owned PT Telekomunikasi
Indonesia. Telkom has a 65 percent stake in Telkomsel.

The State Enterprises Affairs office has advised the
management of Telkom to make preparations for the divestment of
its stake in Telkomsel, according to a letter seen by Dow Jones
Newswires.

The letter, which was signed by Mahmuddin Yasin, a deputy to
Minister of State Enterprises Affairs Laksamana Sukardi, said PT
Danareksa Sekuritas and PT Bahana Securities will act as lead
underwriters for the IPO.

It didn't specify the size of stake that Telkom will sell in
Telkomsel.

Late last year, Laksamana said it will discuss the divestment
plan with Singapore Telecommunications Ltd., or SingTel, which
holds a 35 percent stake in Telkomsel.

The government plans to raise Rp 8 trillion (US$916 billion)
this year through the sale of its assets in state-owned companies
to help narrow the budget deficit.