Satelindo to launch IPO mid-2002

Satelindo to launch IPO mid-2002

The Jakarta Post, Jakarta

Cellular operator PT Satelindo will float its shares via an
initial public offering (IPO) by the middle of next year and was
expected to earn US$75 million in cash to help finance the
expansion of its network, a senior official said on Wednesday.

Budi Prasetyo, director of operations at Satelindo's parent
company PT Indosat, said that the funds were needed to upgrade
Satelindo's services and increase competitiveness.

Under a $430 million debt restructuring agreement with its
creditors last year, Satelindo was not allowed to invest more
than $50 million a year, causing the company to lag behind its
competitors, Reuters reported.

Budi said, however, that the planned IPO would depend largely
on market conditions, and if the plan fell through, Satelindo
would choose between offering its shares to certain institutions
or an equity injection by Indosat of at least $75 million.

Whatever option it takes, it must be settled before July when
some of Satelindo's debts mature, Budi said.

Indosat owns 75 percent of Satelindo and the remainder is
owned by Deutsche Telekom. Both parties had agreed to put more
money into Satelindo if needed, or let their capital be diluted
from a fresh capital injection.

Satelindo, Indonesia's second largest cellular operator, has
more than 1.5 million subscribers and is targeting three million
subscribers in 2002.