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Indonesian CDMA operators may merge
25 June 2010
Two Indonesian CDMA mobile operators, Telekomunikasi Indonesia and Bakrie Telecom, may merge their businesses
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Indonesia
Telkom
Bakrie
CDMA
Telekomunikasi Indonesia
TelkomFlexi
Telekomunikasi Indonesia may acquire a stake in Bakrie Telecom through a rights issue. Bakrie Telecom’s CDMA assets are estimated to be worth up to $1 billion.
The merger between Telkom’s TelkomFlexi, which has nearly 15 million subscribers, and Bakrie Telecom, which has 11 million subscribers, will create an entity, which will be ranked as the fourth-largest cellular operator with more than 70% of the CDMA market.
Telkom will hold a 30% stake, while Bakrie Group’s 39% stake will be reduced to 30%, with the rest owned by the public, after the deal.
Separately, Bakrie Telecom may invest up to $100 million in 2010 to expand its high-speed internet and data services. The firm will make the investments through its unit, Bakrie Connectivity. GTB