Indosat concludes Satelindo buy

Indosat concludes Satelindo buy

JAKARTA: PT Indonesian Satellite Corp. Friday finished
acquiring a 25 percent stake in cellular company PT Satelit
Palapa Indonesia, or Satelindo, from Deutsche Telekom AG of
Germany.

Indosat said in a statement it paid $325 million in cash for
the stake.

The funds for the transaction came from Indosat's internal
cashflow and short-term secured commercial bank loans from state-
owned Bank Mandiri worth Rp 1.5 trillion (US$172 million). It
didn't offer details.

The government owns 65 percent of Indosat, which in turn holds
75 percent of Satelindo. With the acquisition, Indosat wholly
owns wireless company Satelindo.

Previously, Indosat had planned to pay for the acquisition of
Satelindo through issuing new shares and bonds.