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n an attempt to grab the upper class market, publicly listed local phone maker and distributor PT Tiphone Mobile Indonesia will soon realize its plan to acquire a company hold license to distribute iPhone.

Tiphone president commissioner Hengky Setiawan said that his company expected to complete the acquisition in the second quarter of the year.

“We hope to announce the deal soon. The company is the largest iPhone distributor in Indonesia and hopefully it will obtain the license to distribute iPad3. The company will significantly contribute to Tiphone growth as the iPhone market in Indonesia has potential,” Hengky said on the sidelines of his company’s extraordinary shareholders meeting on Friday.

Hengky said that the company had allocated US$10 million to $40 million of internal cash to finance the acquisition.

He said that although his company would have a subsidiary distributing iPhone, Tiphone would continue development and distribution of its own products.

“Their markets are different. Tiphone’s market is the middle-lower segment. We will continue to encourage Tiphone to reach remote areas,” Hengky said.

According to Hengky, Tiphone currently has 120,000 resellers across the country and expects that the number will grow to 300,000 by the end of the year.

“We will use the remaining funds obtained from our recent IPO to develop our retail business and develop our distribution chain, which will help Tiphone’s sales,” Hengky said.

Tiphone reaped Rp 418.5 billion ($45 million) from its recent IPO. Hengky said that the company had already used the funds to pay loans amounting Rp 360 billion to DBS Indonesia bank.

Besides the acquisition of the iPhone distributor, Tiphone is also in negotiations to acquire several other companies.

“We hope to reach deals with two or three companies in the sixth or seventh month,” he said. Currently, Tiphone owns four subsidiaries: PT Telesindo Shop and PT Excel Utama Indonesia engaging in the distribution of telecommunication devices such as vouchers, PT Setiap Utama Services offering after-sales services for cell phones and PT Setia Utama Media Aplikasi involving in content development.

Teleshindo Shop, an authorized distributor of telecommunication giant Telkomsel, is the biggest contributor to Tiphone’s revenue.

Tiphone has not announced its financial reports yet, however, Hengky said that the company reported about Rp 6.7 trillion in revenue and about Rp 100 billion in net profits in 2011.

“This year, we are expecting to book around Rp 7.9 trillion in revenue and above Rp 200 billion in net profits,” he said.

In Friday’s extraordinary meeting, Tiphone approved the resignation of president director Garuda Sugardo and commissioner Widya Purnama. Garuda tendered his resignation to Tiphone’s shareholders approved Tan Lie Pin to become the new president director and Lukman Hadikusumo as the independent commissioner.