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Jakarta Post

Telkom plans to acquire three foreign firms

News Desk (The Jakarta Post)
Jakarta
Fri, October 20, 2017

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Telkom plans to acquire three foreign firms Telkom chief technology officer Abdus Somad Arief signs Telkom-3S satellite's fairing prior to it being placed on top of the Ariane 5 VA235 rocket at the Guiana Space Center's Final Assembly Building in French Guiana, on Feb. 8. (Courtesy of PT Telkom Indonesia/-)

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tate-owned telecommunications company PT Telekomunikasi Indonesia (Telkom Indonesia) will acquire three foreign firms as part of an effort to expand its businesses, kontan.co.id reported on Friday.

The three are reportedly Malaysian firms, one of which is listed in the Singapore bourse.

“Hopefully, the closing could be held by the end of this year,” said a source with knowledge of the matter, adding that he could not reveal the name of the companies because the acquisition was still in the process.

However, the source, who was speaking under conditions of anonymity, did reveal that the firms dealt with financial technology (fintech) and satellites, and had a total worth of Rp 10 trillion (US$739.75 million).

The source further said his company would prepared about Rp 5 trillion for the acquisition process, but would not seek a majority share in the three companies.

The move is part of Telkom Indonesia’s merger and acquisition (M&A) initiative, the source said, adding that it would also expand its tower business through its subsidiary, PT Dayamitra Telekomunikasi (Mitratel).

It plans to merge Mitratel with its other subsidiary cellular phone operator PT Telekomunikasi Seluler (Telkomsel), which is expected to be completed this year.

Meanwhile, David Sutyanto, an analyst of First Asia Capital, said that Telkom Indonesia had the financial capability to carry out an expansion without disrupting its finances.

The company has allocated between Rp 26.7 trillion to Rp 29 trillion for capital expenditure (capex) this year. (bbn)

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