Indosat plans for acquisitions

Indosat plans for acquisitions

JAKARTA (JP): State Minister of the Empowerment of State
Enterprises Tanri Abeng said here Saturday that publicly listed
PT Indosat was considering making some acquisitions in an effort
to boost its value before further divestment of government stakes
in the state-owned international telecommunications provider.

"Three possible (acquisition) targets are being considered,"
he said on the weekend after attending President B.J. Habibie's
state of the nation address.

He declined to provide details because "it would not be fair".

He also dismissed any possibility of acquiring publicly listed
domestic telecommunications company PT Telkom.

"Acquiring Telkom is not an alternative at the moment," he
said.

He also said Indosat would seek facilities from the country's
telecommunications regulator as part of its value creation
strategy.

"This will include restructuring the country's
telecommunications industry and rates," he said.

Tanri said earlier that Indosat's current market
capitalization value of less than US$1 billion would have to be
boosted first to between $2 billion to $2.5 billion before
further divestment of the government's stake by 20 percent to 30
percent.

Indosat is one of the 12 state-owned companies preparing for
privatization this fiscal year to raise some $1.5 billion to help
support the state budget.

The first to go on sale is cementmaker PT Semen Gresik, in
which a deal is expected this month.

Telecom industry experts said Indosat may be eyeing
telecommunications projects exclusively given to Telkom,
including telecom marine cable and satellite projects which could
never get off ground because of the latter's financial
difficulties. (rei)