Mobile-8 shares suspended by Indonesian stock exchange

16 Mar 2009

The stock exchange in Indonesia today suspended trading in shares of domestic wireless operator Mobile-8 Telecom following allegations the firm failed to make good on its IDR675 billion (USD56 million) bond last week. The telecoms group, which is controlled by Indonesian entrepreneur Hary Tanoesoedibjo’s Global Mediacom, is one of the nation’s smaller service providers with a market capitalisation of USD84.5 million. Reuters reports Mobile-8 director Merza Fachys as saying that the bond in question was a local currency bond which matures in 2012. ‘We are now discussing a possible restructuring programme with all the bond holders. This interest payment is also part of the discussion,’ said Fachys. Mobile-8 also issued a USD100 million bond in 2007 that matures in 2013.

In a statement on its website, the stock exchange notes the central securities depository (KSEI), the body responsible for paying bond interest to bond holders, had not received funds from Mobile-8 for the interest payment due on 13 March 2009. Fachys said, however, the payment was not due until 15 March.

Indonesia, Mobile-8 Telecom