Telkom refutes idea it has reached a deal with Bakrie on CDMA asset sale

14 Oct 2010

Eddy Kurnia, the acting corporate secretary for Telkom Indonesia, today announced that the firm has not reached a deal with Bakrie Telecom concerning the sale of its CDMA assets to the company. The swift denial follows a Reuters report yesterday, which cited sources with knowledge of the situation, that Bakrie was poised to purchase Telkom’s CDMA unit in a share deal worth up to USD1 billion.

The two companies have been in talks for some time but have not yet given any details of the terms of any deal. As reported by CommsUpdate yesterday, if concluded the deal will be the largest seen in the country since Qatar Telecom bought a stake in PT Indosat for USD1.35 billion in 2008. More importantly, it would give Bakrie Telecom a dominant position in the fast-growing Indonesian CDMA market. Under the deal Bakrie Telecom is looking to issue new shares and swap them for Telkom’s CDMA assets worth between IDR7 trillion and IDR9 trillion, the sources claimed.

Indonesia, Bakrie Telecom (BTel), Telkom Indonesia