Indonesian mobile operator Bakrie Telecom is expected to acquire the CDMA assets of PT Telkom in a share swap deal valued at about US$1bn, according to a Reuters source.
Under the deal, Bakrie Telecom would issue new shares and swap them for Telkom’s…
Indonesian mobile operator Bakrie Telecom is expected to acquire the CDMA assets of PT Telkom in a share swap deal valued at about US$1bn, according to a Reuters source.
Under the deal, Bakrie Telecom would issue new shares and swap them for Telkom’s CDMA assets worth between Rp 7 trillion (US$785m) and Rp 9 trillion (US$1bn), the source said. The transaction is expected to be signed in November or December.
Minister for State Enterprises Mustafa Abubakar was recently quoted as saying that the CDMA operations of the companies could be merged under one entity and owned by Telkom, Bakrie and the public.
But the country’s business competition supervisory commission expressed concerns, saying the deal could lead to a monopoly of the Indonesian CDMA market, local. The regulator has asked the two companies to be pre-notified before the start of the transaction, which could see Bakrie own between 70% and 100% of the CDMA market, according to estimates.
Telkom is more than 50% owned by the Indonesian government and the remaining shares are listed. The company is looking to acquire a telecom-related business for about Rp 1 trillion (US$112m) by year-end, according to its CEO cited by Dow Jones yesterday.
Rinaldi Firmansyah was quoted saying the transaction would close at the beginning of next year, adding that three other companies are also bidding for the target.
