TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Huawei takes over 16% shares in Bakrie Telecom through bond conversion
The local unit of Chinese telecommunications giant Huawei has secured 16.83 percent of publicly listed telecommunications operator PT Bakrie Telecom through bond conversion, paving the way for the latter to recover from its financial woes.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Telecommunications operator PT Bakrie Telecom president commissioner Anindya Novyan Bakrie answers the journalist's question in Jakarta on June 28, 2016. (thejakartapost.com/Anton Hermansyah)
T
he local unit of Chinese telecommunications giant Huawei has secured 16.83 percent of publicly listed telecommunications operator PT Bakrie Telecom through bond conversion, paving the way for the latter to recover from its financial woes.
Bakrie Telecom president commissioner Anindya Novyan Bakrie said the conversion would help improve the company’s financial condition as it had converted Rp 1.23 trillion (US$92.05 million) debt into shares.
In 2016, Bakrie Telecom issued a Rp 7.6 trillion mandatory convertible bond to restructure its Rp 11.6 trillion debt.
"The mandatory convertible bond actually has a long tenor, but Huawei chose to convert it into shares. We welcome the decision," Anindya said on Tuesday.
(Read also: Bakrie Telecom to convert half of US$1 billion debt into shares)
According to Indonesia Stock Exchange (IDX) rules, shares resulting from the conversion will not be available for trade for one year.
With the ownership, PT Huawei Tech Investment has the right to place representatives on Bakrie Telecom’s boards of directors or commissioners. However, Anindya said the matter had not been discussed as yet.
"They may place representatives. It will be decided at the next shareholders meeting, but there has been no talk about it yet," he said.
Anindya added that Bakrie Telecom was currently formulating its business plan for 2017. (hwa)
