Telecoms giant PT Telekomunikasi Indonesia (Telkom) has reportedly turned its back on the planned acquisition of New Zealand mobile operator 2degrees, after failing to reach agreement on the value of the deal. In a filing to the local bourse in Jakarta, state-backed Telkom confirmed the transaction was off, although it has reiterated its intentions to seek out new regional partners across the Middle East and Asia – part of the group expansion strategy it started in 2013.
As previously reported by CommsUpdate, in November 2014 Telkom, Indonesia’s largest telecoms company, revealed it was looking to acquire a stake of between 25% and 30% in the New Zealand mobile operator. At the time, Telkom finance director Honesti Basyir was quoted as saying that the Indonesian firm was in the process of performing due diligence on 2degrees, and hoped to complete the transaction by the end of the year. However, the pair have failed to agree on a price for 2degrees which, according to TeleGeography’s GlobalComms Database, is the third largest player in the local market with a 30.6% market share at 3Q14, behind Vodafone (37.0%) and Spark Mobile (32.4%).