Telkom hires Morgan to buy back shares

Telkom hires Morgan to buy back shares

JAKARTA: PT Telekomunikasi Indonesia (Telkom), the nation's biggest telephone company, hired Morgan Stanley and PT Danareksa Sekuritas as advisers to help buy back as much as Rp 3 trillion (US$297 million) of stock.

"The company needs shareholder and regulatory approval to buy back the shares," Orias Petrus Moedak, a director at Danareksa, said in Jakarta on Monday.

The company will use cash to fund the buyback, president Arwin Rasyid said on Sept. 30. Telkom will seek shareholder approval for the buyback at a meeting in November, he said.

About 7 percent of Telkom's shares are traded on the New York Stock Exchange. -- Bloomberg