Telkom calls off purchase of CamGSM stake

PT Telekomunikasi Indonesia (Telkom) has said it has cancelled plans to acquire a majority stake in Cambodian mobile operator CamGSM, local newspaper The Phnom Penh Post reports, citing a statement from Telkom finance director Sudiro Asno. First reported in late 2010, the deal was expected to be completed by the first quarter of 2011. The Indonesian mobile operator reportedly completed due diligence on CamGSM in May, with negotiations with CamGSM’s parent, Royal Group of Cambodia, said to be ongoing since then. However, the deal has now been called off due to differences over the price of the stake. TeleGeography’s GlobalComms Database states that CamGSM was established in April 1996 as a joint venture between Luxembourg’s Millicom International Cellular (MIC, 58.4%) and the Royal Group of Cambodia (41.6%). The same month it was awarded a 25-year (extended to 35 years in 1999) GSM-900 licence and services were launched in March 1997 under the Mobitel banner. As part of a wider strategy to divest its operations in the Asian market, MIC sold its stake in CamGSM to the Royal Group in August 2009 for USD346 million in cash, raising its local partner’s shareholding to 100%.