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