Telkom: SingTel would sell its 35% stake in Telkomsel

6 Oct 2011

Indonesia’s leading telecoms operator by subscribers and revenues, Telekomunikasi Indonesia (Telkom), has said that Singaporean group SingTel is willing to sell its 35% stake in their mobile joint venture Telkomsel. Reuters reports that Telkom’s plan to buy back the stake – initiated by the government and approved by shareholders in Telkom’s AGM in May – is a reaction to Telkom’s struggle to maintain profits in a mobile market that is experiencing intense competition. Speaking at a press conference, Telkom CFO Sudiro Asno said: ‘So far, there’s informal talks between the government, Telkom and SingTel regarding this matter.’ However, he went on to add that the crucial factor is that SingTel is willing to sell the stake dependent on the value of the offer and its structure. Telkom intends to pick an advisor for the plan this month, he said.

Indonesia, Singtel Group, Telkom Indonesia, Telkomsel (Telekomunikasi Selular)