Telkom refutes claim it has submitted Pacnet bid

15 May 2012

The chairman of PT Telekomunikasi Indonesia (Telkom Indonesia), Jusman Syafii, has told Dow Jones Newswires that his firm has not submitted a bid to buy the undersea cable operator Pacnet Limited, scotching earlier press rumours that a deal is in place. The official declined to provide full details, but did say: ‘We’re just assessing [a deal], but there’s been no decision and we haven’t yet submitted a bid.’

Last week, Reuters reported that Telkom, Indonesia’s largest telecommunications firm by assets and subscribers, submitted a bid to buy Pacnet for around USD1 billion including debt, after conducting due diligence on its business over the past few months. The report went on to claim that Pacnet had 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.

Indonesia, Pacific Internet (PacNet) Australia, Pacnet, Pacnet (Malaysia), Pacnet Singapore (including OSINet), Telkom Indonesia