Indonesian incumbent PT Telekomunikasi Indonesia (Telkom) is rethinking its US$1bn CDMA deal with local operator Bakrie Telecom, according to a Reuters report today.
Back in October, it was reported that Bakrie would acquire the CDMA assets of Telkom…
Indonesian incumbent PT Telekomunikasi Indonesia (Telkom) is rethinking its US$1bn CDMA deal with local operator Bakrie Telecom, according to a Reuters report today.
Back in October, it was reported that Bakrie would acquire the CDMA assets of Telkom before the end of 2010 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 Rp7 trillion (US$785m) and Rp9 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.
A deal between the two companies would see Bakrie own some 70% to 100% of the CDMA market. Telkom is more than 50% owned by the Indonesian government, with the remainder listed.
However, Telkom chairman Jusman Syafii Djamal was recently quoted saying that the company is now re-evaluating the fixed-wireless deal as it wants a majority stake in the transaction.
In separate news, Telkom said in early January that it was looking to borrow as much as Rp7 trillion (US$777m) from Bank Rakyat Indonesia to fund part of its 2011 capex plans, according to local media.
Telkom could not be reached before the press deadline and Bakrie declined to comment.
