Indonesia’s sixth-largest mobile operator, Bakrie Telecom, has sold a 10% stake in itself to the mobile unit of local conglomerate Sampoerna, Ceria Mobile, for US$90m, according to a Reuters report citing a joint statement.
In return for the sale of a…
Indonesia’s sixth-largest mobile operator, Bakrie Telecom, has sold a 10% stake in itself to the mobile unit of local conglomerate Sampoerna, Ceria Mobile, for US$90m, according to a Reuters report citing a joint statement.
In return for the sale of a 10% stake, Bakrie will reportedly get a 35% interest in Ceria through a share swap. Citing the statement, Reuters said that Bakrie also has the option to become Ceria’s majority shareholder in the next three years.
The shareholders of both companies have agreed to integrate the two businesses under the management of Bakrie Telecom. Ceria is currently number 10 in the country.
Previous reports had suggested that Credit Suisse was acting as the financial adviser of Bakrie’s parent company, Bakrie & Brothers, on this deal.
Bakrie Telecom is reportedly planning to use the proceeds of that sale to repay a Rp650bn (US$71.4m) bond that matures in September 2012.
The Indonesian mobile market is currently populated with 10 carriers and, as is the case in India, consolidation has long been expected.
The companies could not be reached for comment before the press deadline.
