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View all search resultsTelkom seeks buyers for entire stake in subsidiaries
The country’s largest telecommunication operator, PT Telekomunikasi Indonesia (Telkom), on Wednesday announced it was in the process of finding buyers for entire ownership of PT Citra Sari Makmur (CSM) and PT Pasifik Satelit Nusantara
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T
he country’s largest telecommunication operator, PT Telekomunikasi Indonesia (Telkom), on Wednesday announced it was in the process of finding buyers for entire ownership of PT Citra Sari Makmur (CSM) and PT Pasifik Satelit Nusantara.
Telkom information technology director Indra Utoyo said the divestment was part of the company’s plan to focus on businesses that it had majority ownership of. Telkom currently controls 25 percent of shares in land network operator CSM and 35 percent of shares in satellite operator PSN.
Telkom recently divested 40 percent ownership in terrestrial network provider PT Patra Telekomunikasi Indonesia (Patrakom).
Based on Telkom’s website, it has a total of 15 business units and more than a 50 percent share of ownership of three companies, between 20 and 50 percent ownership of three companies and less than 20 percent ownership of three companies.
“Rather than investing in small units, we prefer to spend money on divisions where we have majority ownership, such as Metra [PT Multimedia Nusantara],” Indra said.
Metra is 100 percent Telkom controlled.
Indra said Telkom was having difficulty finding buyers for CSM and PSN, citing no offers so far had matched Telkom’s selling prices.
“There has been little interest. Many investors think the companies are not attractive because Telkom is pulling out from them,” Indra said, refusing to reveal the tag price for each company.
Because of this, the company has extended its target divestment period, Indra added.
Aside from its divestment plans, Telkom president director Rinaldi Firmansyah announced earlier
this year that the company was set to acquire shares in two firms in the information and communication technology (ICT) sector, as it seeks to strengthen its non-core business.
Telkom did not disclose the names of the companies, but said it had set aside a budget of Rp 1
trillion (US$106 million) for the acquisitions.
Telkom’s net profit fell to Rp 6.04 trillion in the first semester of this year from Rp 6.23 trillion in the same period last year, mainly because its operating expenses increased by 7.6 percent to Rp 19.09 trillion.
Telkom, a blue-chip company in the Indonesia Stock Exchange, gained 0.6 percent Wednesday, reaching Rp 8,650 per share at market closing.
Telkom recently divested 40 percent ownership in terrestrial network provider PT Patra Telekomunikasi Indonesia.
