Indonesian incumbent Telkom (IDX:TLKM) has reportedly called off a share-swap deal that would have seen it transfer a 49% stake in its tower unit Mitratel to Tower Bersama Infrastructure (IDX:TBIG).
Indonesian incumbent Telkom (IDX:TLKM) has reportedly called off a share-swap deal that would have seen it transfer a 49% stake in its tower unit Mitratel to Tower Bersama Infrastructure (IDX:TBIG).
Jakarta-based Telkom said in a statement that it is “in the process of termination due to (company) commissioners’ request to terminate the transaction”, Reuters reported. No reasons for doing so were provided.
The companies first announced the conditional deal, which would have given Telkom a 5.7% stake in Tower Bersama, in October 2014. The agreement also gave Telkom the option to exchange its remaining 51% stake in the tower unit within two years and thereby boost its stake in Tower Bersama to 13.7%. It was subject to various approvals, including those of Tower Bersama and Mitratel shareholders.
In July this year, Telkom and Tower Bersama said they had agreed to extend the deadline to fulfil closing conditions until the end of March. State enterprises minister Rini Soemarno had previously been cited saying Telkom had decided to abandon the deal.