Telkom plans to sell noncore subsidiaries

Telkom plans to sell noncore subsidiaries

JAKARTA (JP): State-owned telecommunications company PT Telkom
plans to divest a number of subsidiaries and shareholdings in
several noncore businesses, a senior executive said on Wednesday.

Telkom director of operations and marketing Komarudin
Sastrakoesoemah said the move was part of the company's plan to
concentrate on its core business, which is providing phone,
mobile, video and Internet services.

"But we have not disclosed the names (of the subsidiaries and
noncore businesses) because we fear the companies' value will go
down once we announce it," he said, adding that Telkom would let
go of about nine of its 16 subsidiaries and shareholdings.

As part of the plan, he said, the company would also raise its
interest in the subsidiaries active in its core business.

Telkom has mapped out which subsidiaries and shareholdings
will be sold, those which the company will increase its interest
in and which will be maintained in their current state, he said.

However, the sales will only occur when the prices of the
companies are favorable, he said, adding that Telkom is not in a
hurry to sell.

"The sales are part of the company's plan, but we are not
desperate to do so," Komarudin said.

Antara quoted sources as saying Telkom would divest its 25
percent share in PT Citra Sari Makmur, its 22 percent share in PT
Pasifik Satelit Nusantara, 9 percent in PT Telekomindo
Primabhakti, 8 percent in PT Batam Bintan Telekomunikasi and 35
percent in PT Komselindo.

Telkom will also divest its shares in PT Telesera, PT Mobisel
and PT Menara Jakarta, the sources said.

Earlier, state-owned telecommunications company PT Indosat
said it would divest some 10 to 15 companies which were not in
line with its core business.

Indosat also said the sales would wait until the prices of the
companies were favorable, but that it expected the sales to occur
by the end of the year or sometime next year.(tnt)