Telkom sells three subsidiaries to Centralindo

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.