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Telkom Indonesia in merger with Bakrie
15 June 2010
Bakrie Telecom in Indonesia is to merge its CDMA operations with those of Telekomunikasi Indonesia
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Bakrie Telecom
Indonesia
Telekomunikasi Indonesia
CDMA
Flexi
Telekomunikasi Indonesia is merging with Bakrie Telecom to offer phone services using CDMA technology. The mobile arm of Indonesian conglomerate Bakrie & Brothers will fund the deal with a rights offering worth nearly $870 million.
The company will combine its Flexi CDMA-based cellular division with midsize mobile operator, Bakrie Telecom. The merged company will have nearly 26 million subscribers.
The deal, which is expected to be completed this month, will give Telkom and Bakrie & Brothers each nearly 30% stake in Bakrie Telecom. Telkom, which invests nearly $200 million annually to develop Flexi, will have its cost of spending reduced with the merger.
Telkom and Bakrie & Brothers will be standby buyers for rights shares, which aren’t subscribed by shareholders of Bakrie Telecom. GTB