Singapore-listed handset retailer Polaris has sold a 19.9% stake in its Indonesian unit Trikomsel to acquisitive Japanese telco Softbank.
Financial details were not disclosed
The stake is valued at about US$120m based on the company’s stock price,…
Singapore-listed handset retailer Polaris has sold a 19.9% stake in its Indonesian unit Trikomsel to acquisitive Japanese telco Softbank.
Financial details were not disclosed
The stake is valued at about US$120m based on the company’s stock price, and the news sent Polaris’ shares soaring by more than 30% earlier today.
Polaris remains Trikomsel’s largest shareholder with a 44.88% stake. The Singapore-listed group is controlled by Indonesian businessman Sugiono Wiyono, who is also president director of Trikomsel.
“This is good momentum for Trikomsel to further expand its business because we trust that the experience, network, resources and technology held by SoftBank as a global internet and telecommunications company will bring great benefits and synergy to Trikomsel and our regional group, especially in Southeast Asia,” Sugiono said.
Softbank has been making a series of acquisitions to diversify its portfolio and branch out from Japan’s saturated mobile market. Recent additions to its investment portfolio include taxi hailing app operators in China and India, Indonesian e-commerce firm Tokopedia, and Indian real estate platform housing.com.
India’s fast-growing market is of particular interest to the group. The telco is reportedly considering plans to buy a 20% stake in local handset maker Micromax Informatix for around US$1bn.
Meanwhile, the number of smartphone users in Indonesia is expected to grow from 61 million in 2014 to more than 100 million in 2017. 4G penetration in the country is also estimated to be as low as 5%, compared with 50-70% in Singapore.
Sugiono expects underlying demand in the country will come from its young population, where roughly a third are under the age of 15.
“This represents good growth potential given that they are likely to be more technologically savvy and are attracted to smartphone features which offer greater convenience and connectivity,” he said.
