SKT fails to make short-list for Excelcomindo

9 Dec 2004

South Korea’s largest mobile operator SK Telecom (SKT) has failed to make the shortlist of preferred bidders for a stake in Indonesian cellco PT Excelcomindo Pratama. In a submission to the country’s Financial Supervisory Service SKT said it had ‘submitted a bid on 22 November, but was notified on the 9 December that [it was] excluded as a preferred negotiator’. Earlier in the day SKT spokesman Chai Young Hoon confirmed that the company was one of several to submit a bid, adding that the cellco considered Indonesia a strong prospect for growth on account of the country’s low wireless penetration rate. The Korean operator has been actively looking to expand overseas in the face of saturation and slowing revenue growth in its domestic market. Excelcomindo, which at the end of September had around 4.2 million subscribers and a market share of 15%, is majority owned by Indonesian telco PT Telkom (60%). Other shareholders include Verizon Communications (23.1%), Asian Infrastructure Fund (12.7%) and Mitsui & Co of Japan (4.2%). Excelcomindo plans to sell a stake through an initial public offering before the end of the year.

Indonesia, SK Telecom (SKT), XL Axiata