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.