Investors important in Indosat bidding
Investors important in Indosat bidding
The Jakarta Post, Jakarta
The government is placing the quality of the investors as well
as their price offers on an equal footing for the bidding of a 41
percent stake in state-owned telecommunications company PT
Indosat.
State Minister for State Enterprises Laksamana Sukardi said on
Monday that aside from the price, the added value that investors
could generate for Indosat was also important.
"We will give the price, the investor and the sales and
purchase agreement equal weighting," Laksamana said following a
hearing with the House of Representatives Commission V for
industry and trade affairs.
He said that he expected more input on the bidding criteria
from the government's financial advisors, state-owned brokerage
firm PT Danareksa Sekuritas and Credit Suisse First Boston
(Singapore) Ltd.
The government owns a 56.9 percent stake in the publicly
listed Indosat, having sold an 8.1 percent share for US$110
million earlier in May.
Laksamana said he expected the future investor would improve
Indosat's performance and put the company on the global map.
"A telecommunications company with a foreign network would
make Indosat part of a more global network and this is added
value."
Indonesia plans to sell off Indosat this month, hoping the 41
percent will cover most of the Rp 3.9 trillion (about $433
million) it aims to raise from this year's privatization program.
About Rp 2.26 trillion has been raised through this program so
far. The proceeds program is earmarked to help finance the
country's state budget deficit of an estimated Rp 42 trillion
this year.
"There are three bidders who appear serious," Laksamana said,
adding that they were all foreign.
Interest in Indosat has risen since it ended a cross-ownership
deal with state-owned telecommunications company PT Telkom
Indonesia last year.
The move landed Indosat a 75 percent stake in cellular phone
operator PT Satelindo, boosting its foothold in the country's
thriving cellular market.
It purchased the remaining 25 percent stake from Germany's
Deutsche Telekom in a deal worth $325 million last June.
Indosat, which remains the only international call operator
until next year, also entered the local call market in August as
part of the government's plan to open up the telecommunications
sector.