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Jakarta Post

Telkom says valuation is on track to acquire Pacnet

  • Raras Cahyafitri

    The Jakarta Post

Jakarta   /   Wed, May 23 2012   /  08:44 am

Arief Yahya. JP/R. Berto WedhatamaIndonesia’s largest telecommunication provider, PT Telekomunikasi Indonesia (Telkom), says due diligence for its plan to buy a controlling stake in Hong Kong and Singapore-based undersea cable operator Pacnet Ltd. will be completed next month.

Newly appointed president director Arief Yahya said the company planned to use both internal and external cash to finance the acquisition, whose value has yet to be determined, pending due diligence.

“We have time for ‘go or no go’ until this June [...] Once we submit [the bid], we have to keep silent about it,” Arief told reporters on Monday. Arief confirmed that Telkom submitted its bid earlier this month, when the company was under previous management.

Pacnet reportedly has a value of US$1 billion. According to a report by rating agency Moody’s Investor Service, Pacnet reaped $52...