Telkom sells three subsidiaries to Centralindo

The Jakarta Post, Jakarta

State-owned telecommunications company PT Telkom has signed a Rp 364.8 billion (US$44.49 million) share-swap deal with telecommunications firm PT Centralindo Pacasakti Cellular, Telkom's investor relations manager Rochiman Sukarno said in a press statement on Monday.

Under the agreement, which was signed late last week, the publicly-listed Telkom will sell its ownership in cellular companies including a 14.2 percent stake in PT Komunikasi Selular Indonesia (Komselindo), its 20.17 percent of the shares in PT Metro Selular PT Metro Selular Indonesia (Metrosel), and its 100 percent stake in PT Telekomindo Selular Raya (Telesera).

Telkom's stakes in the three companies are worth Rp 185.1 billion.

In return, Telkom will get a 30.58 percent stake in PT Indonusa Telemedia (Indonusa) from Centralindo and will also receive an option to buy a 16.85 percent stake in PT Pasifik Satelit Nusantara (PSN) within one year. The stakes in the two companies are worth Rp 179.70 billion.

Centralindo will also pay Telkom Rp 5.4 billion in cash.

After the agreement, Telkom will no longer have shares in Komselindo, Metrosel and Telesera, while its stake in Indonusa will increase to 57.5 percent while that in PSN will rise to 34.85 percent.

Telkom said the share-swap agreement was part of the company's restructuring plan.

Centralindo is controlled by Bhakti Investama Group, which also owns a 37.6 percent stake in publicly-listed conglomerate PT Bimantara Citra.

Telkom has a 65 percent stake in the country's largest cellular phone company, PT Telkomsel, which controls around 54 percent of the domestic cellular business. Singapore Telecommunications Ltd. (SingTel) holds a 35 percent stake in the company.