Telkom officially buys out Pramindo

Telkom officially buys out Pramindo

JAKARTA: State-owned telecommunications company Telkom has
officially acquired its Sumatran Regional Division I operational
partner, PT Pramindo Ikat Nusantara (Pramindo).

The buyout came into effect on Monday after Telkom fulfilled
the payment of its call option for promissory notes the company
had issued for the buyout, as stipulated in an acquisition
agreement signed last August between Telkom's management and
Pramindo's shareholders, Telkom said in a statement.

Previously, Telkom announced that it would finance the call
option using a short-term loan worth US$129.6 million from FAMRO
Bank N.V. Jakarta (ABN-AMRO).

The company will repay the loan and its interest through a 10
payments from March 31 to Dec. 31.

The acquisition of Pramindo will give Telkom a business and
financial gain, as the company now has full control over the
operation and development of the Sumatran Regional Division I and
its customers, Telkom said. --JP