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Telkom Indonesia bids to buy Pacnet
09 May 2012
Approach from Indonesian state-controlled operator values submarine cable company at $1bn
State-controlled Telekomunikasi Indonesia has submitted a bid to purchase Asian undersea cable firm Pacnet, reported Reuters citing sources close to the move.
Pacnet, which is owned by groups including Clearwater Capital Partners and Ashmore Investment Management, has more than 46,420 kilometres of undersea cable infrastructure throughout Asia and the Pacific Ocean.
This development may see the start overseas buyouts by Indonesian companies as they are utilising profits achieved as a result of a developing domestic market. The transaction, which values the company at nearly $1 billion including debt, is expected to close by the end of the second quarter. According to the sources, the deal may face obstacles as the valuation is yet to be settled.
Rinaldi Firmansyah, Telkom Indonesia's CEO, told Reuters: “We continue to invest in fibre optic as it will help our customers to get faster internet data.” However he declined to confirm the bid for Asian undersea cable firm, according to Reuters.
Pacnet was put on sale in 2011, but its sale slowed down after it received lower than expected offers in the first round, according to Reuters. Pacnet has appointed Goldman Sachs and Credit Suisse to advice on the transaction. GTB
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