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Indonesia’s Telkom calls off Pacnet deal
21 June 2012
Telekomunikasi Indonesia CEO drops plan to buy Pacnet, saying acquisition will not bring added value
State-controlled firm Telekomunikasi Indonesia has cancelled its plan to purchase Asian undersea cable firm Pacnet from its private equity owners, reports Reuters.
Arif Yahya, Telekomunikasi Indonesia’s chief executive, told Reuters: “We cancel our plan to buy Pacnet because it doesn’t bring added value to the company.”
It was reported earlier that the transaction, which valued Pacnet at nearly $1 billion including debt, was likely to close by the end of the second quarter. Pacnet was put on sale last year, but its sale slowed down after it received lower than expected offers in the first round, according to Reuters.
Pacnet, which is owned by groups including Clearwater Capital Partners and Ashmore Investment Management, has over 46,420 kilometres of undersea cable infrastructure throughout Asia and the Pacific Ocean. GTB
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