Indonesian mobile operator PT Telkom has not reached a deal with rival Bakrie Telecom to sell its CDMA assets, according to Eddy Kurnia, the acting corporate secretary of Telkom cited by TeleGeography.
Earlier this week, Reuters reported that Bakrie…
Indonesian mobile operator PT Telkom has not reached a deal with rival Bakrie Telecom to sell its CDMA assets, according to Eddy Kurnia, the acting corporate secretary of Telkom cited by TeleGeography.
Earlier this week, Reuters reported that Bakrie would acquire the CDMA assets of Telkom before the end of the year, in a share swap deal valued at about US$1bn.
Under the deal, Bakrie Telecom was expected to issue new shares and swap them for Telkom’s CDMA assets worth between Rp 7 trillion (US$785m) and Rp 9 trillion (US$1bn).
But the country’s business competition supervisory commission expressed concerns, saying the deal could lead to a monopoly of the Indonesian CDMA market. The regulator asked the two companies to be pre-notified before the start of the deal, 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. Its CEO was recently quoted as saying that the company is looking to acquire a telecom-related business for about Rp 1 trillion (US$112m) by year-end.
