Sinar Mas and Mobile-8 discuss future synergy

13 Aug 2009

Smart Telecom, the Indonesian phone company jointly owned by PT Inti, PT Global Nusa, PT Mobilindo Telkom and PT Wireless Indonesia of the Sinar Mas Group, has reportedly begun ‘exploring opportunities’ with Mobile-8 Telecom, a subsidiary of PT Global Mediacom. Bisnis Indonesia writes that people familiar with the situation say the two sides are discussing synergy options that could include a merger or Smart Telecom acquiring Mobile-8 stock. However, a stumbling block appears to be the asking price: the unnamed source says that while Sinar Mas is interested in purchasing Mobile-8, the IDR50 per share price is too expensive – especially given the latter’s loss-making status and high debts.

Sinar Mas and Smart Telecom are not the only firms interested in acquiring Mobile-8 Telecom. PT Bakrie Telecom is also exploring a possible consolidation with Mobile-8. The operator, owned by Bakrie Group, is expected to set forth its merger and acquisition plans with other telecommunications operators in mid-2010, Bisnis Indonesia says.

Indonesia, Mobile-8 Telecom, PT Smart Telecom (Smartfren)