Telkom controls Dayamitra

State-owned telecommunications company PT Telkom is now the sole owner of PT Dayamitra Telekomunikasi, which operates fixed-line telephones in Kalimantan, after acquiring the final 9.68 percent stake in the company.

In a statement on Friday, Telkom said it had signed a sales and purchase agreement with Hong Kong-based TM Communication to buy the remaining stake in Dayamitra for US$16.2 million.

Telkom said it would begin paying for the shares on Dec. 26 with monthly installments of $787,390. It expects to complete the payments on March 26, 2006.

As a guarantee, Telkom will issue non-transferable promissory notes to TM, which will concurrently transfer its 9.68 percent stake to Telkom.

With the purchase, Telkom will be the 100 percent owner of Dayamitra, enabling it fully to implement strategic programs to develop the telecommunications network in Kalimantan.

Dayamitra was formed by Telkom under a joint operating scheme with TM, Singapore-based Cable & Wireless and two local companies in 1996 to undertake telecommunications operations in Kalimantan.

In 2001, Telkom paid $121.9 million for a 90.32 percent stake in Dayamitra, and took over the company's debts amounting to about $88.5 million. Based on the sales and purchase agreement, Telkom will assume responsibility for a portion of the debt. -- JP