Telkom makes play for Pacnet

8 May 2012

PT Telekomunikasi Indonesia (Telkom Indonesia) has submitted a bid to buy Asian submarine cable network operator Pacnet, in a deal that could value Pacnet at around USD1 billion including debt, sources quoted by Reuters said today. Indonesia’s largest telecoms group, majority controlled by the country’s government, reportedly tabled the bid last week after conducting due diligence on Pacnet’s business over the past few months, while Pacnet has appointed Credit Suisse and Goldman Sachs to advise on a planned sale. Pacnet has direct ownership of three international undersea cables, EAC-C2C, Unity and i2i Cable Network (i2icn). EAC-C2C stretches 36,800km between Hong Kong, China, Korea, Japan, Taiwan, the Philippines and Singapore, with a design capacity of between 17.92Tbps and 30.72Tbps to and from each of the landing countries. TeleGeography says that in total, the company has ownership of 46,420km of submarine cable infrastructure and has around 100 points of presence, while it markets its two-fibre-pair segment of the Japan-US Unity consortium cable as EAC Pacific. Pacnet is headquartered in Hong Kong and Singapore, with offices in markets across Asia and North America, and is currently owned by groups including Ashmore Investment Management and Clearwater Capital Partners. Last year, after a proposed initial public offering (IPO) failed to materialise, Pacnet cancelled alternative plans for a direct sale when financial offers did not meet its targets.

Hong Kong, Indonesia, Singapore, Pacific Internet (PacNet) Australia, Pacnet, Pacnet (Malaysia), Telkom Indonesia