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ublicly listed telephone distributor PT Trikomsel Oke Tbk (TRIO) will offer new shares in a rights issue to fund a US$100 million acquisition of Indonesia’s No. 2 phone seller, PT Global Teleshop, to create the nation’s largest telephone retailer with the largest number of networks.

Trikomsel Oke, the nation’s largest telephone distributor, which runs OkeShop outlets, will purchase an 80 percent stake of Global Teleshop at a discounted price from the estimated valuation of Rp 1.21 trillion ($133.1 million), according to Trikomsel Oke’s statement published on Monday.

“With the consolidation, we expect a synergy to save operations costs, which in turn is expected to improve the company’s overall performance, including in human resources marketing costs, information technology, as well as in more effective and efficient network management, especially in leasing and ordering items from vendors,” the statement reads.

Trikomsel Oke currently has more than 800 outlets in 175 cities across Indonesia, while Global Teleshop runs 313 outlets in major cities, focusing more on mid to high-end smartphone sales.

To partly fund the acquisition, Trikomsel Oke aims to collect between Rp 249.2 billion and Rp 267.89 billion in a rights issue by offering 311.5 million new shares, also in a rights issue.

The company will also offer 943.4 million securities convertible to shares after five years to collect between Rp 754.72 billion and Rp 811.32 billion.

“About 80 percent of the proceeds will be used to acquire an 80 percent stake in Global Teleshop,” the company said in the statement, adding that the remaining 20 percent would be used to finance Trikomsel Oke’s capital expenditure and to repay bank loans.

Holders for every 500 shares of the company until May 2 will be entitled to purchase 35 new shares in the rights issue and 1 unit of the company’s securities being offered with the rights shares at between Rp 800 and Rp 860 each.

Shares of Trikomsel Oke traded at the Indonesia Stock Exchange (IDX) jumped 2.38 percent on Monday to Rp 860 each.

PT Equator Capital Partners has expressed commitment to be standby buyers for the rights issue, while PT UOB Kay Hian Securities has been appointed as an international selling agent for the new shares offering.

Trikomsel Oke saw an almost 50 percent surge in net profit last year to Rp 304.35 billion as net revenues also increased 28.96 percent to Rp 7.11 trillion while cost of revenues and operating expenses remained manageable.

During the same period, Global Teleshop’s net revenues and net profits surged more than 40 times, respectively to Rp 1.86 trillion and Rp 77.58 billion.

Global Teleshop has three subsidiaries in related business sectors, namely Bali-based computer sales and services firm PT Persada Centra Maxindo, trading and services company in Surabaya PT Persada Centra Digital and general trading firm PT Global Distribution in Jakarta.

Trikomsel Oke will take control of these units after the acquisition.

The three subsidiaries had combined total assets of Rp 57.52 billion, while Global Teleshop alone had Rp 893.44 billion total assets.

After the consolidation, Trikomsel Oke’s total assets, including the number of outlets, will be lifted from Rp 3.81 trillion in December 2011.

After the takeover, Trikomsel Oke will have more than a thousand retail mobile phone outlets throughout the country.