State-owned PT Telekomunikasi Indonesia 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.
Rinaldi Firmansyah was quoted saying the transaction would close at the…
State-owned PT Telekomunikasi Indonesia 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.
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.
Recently, the Indonesian government reportedly said that a merger between the CDMA operations of Telekomunikasi Indonesia and Bakrie Telecom could be completed by the end of the year.
Minister for State Enterprises Mustafa Abubakar was quoted as saying that the CDMA operations of the companies would be merged under one entity and owned by Telkom, Bakrie and the public. He also said that Telkom could buy new shares in Bakrie, which would be offered through a rights issue, as part of the merger agreement.
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 merger, which could see Bakrie and Telkom 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.
