Telkom secures majority stake in DayaMitra

JAKARTA (JP): State-owned telecommunications company PT Telkom has signed a memorandum of understanding to acquire a majority stake in PT Daya Mitra Telekomunikasi (DayaMitra), its partner in the KSO joint operation scheme.

Telkom said it would pay US$121.93 million for a 90.32 percent stake in DayaMitra, which provides telephone services in KSO Region VI covering all of Kalimantan.

Telkom also agreed to take over the larger part of DayaMitra's debt obligation of about $88.5 million, the company said in a statement.

Telkom will make an initial payment of $18.29 million upon completion of the transaction and will pay the rest of the debt in equal quarterly installments over a two-year period, it said.

The completion of the transaction is subject to certain conditions, including execution of definitive legally binding documentation and the approval of both companies' shareholders.

"Following the completion of the transaction, DayaMitra will be 90.32 percent owned by Telkom, with the Hong Kong-based TM Communications Ltd. owning the remaining 9.68 percent interest," the company said.

Telkom president Muhammad Nazif said the agreement with DayaMitra was part of a comprehensive program to restructure the operations of its five KSO partners.

The state telecommunications company earlier agreed to sell its interest in Mitra Global Telekomunikasi Indonesia, its KSO partner for KSO Region IV covering Central Java.

DayaMitra, a joint venture between Cable & Wireless (Singapore) Pte. Ltd., TM Communications Ltd. and two Indonesian companies, obtained a license in 1995 to provide phone services in Kalimantan under a joint operation scheme with Telkom.

Telkom's other KSO partners are PT Pramindo Ikat Nusantara, which operates in Sumatra, PT Aria West International in West Java and PT Bukaka Singtel International in eastern Indonesia. (hen)