Ooredoo and CK Hutchison extend exclusivity period for a third time

17 Aug 2021

Ooredoo Group and CK Hutchison Holdings announced yesterday (16 August) that they have agreed to extend the period of exclusivity for the non-legally binding Memorandum of Understanding (MoU) in relation to a possible transaction to merge their Indonesian units – Indosat Ooredoo and Hutchison 3 Indonesia (Tri) – until 23 September 2021.

As previously reported by TeleGeography’s CommsUpdate, in January 2021 Qatar-based Ooredoo and Hong Kong conglomerate CK Hutchison Holdings entered into talks to combine Indosat Ooredoo and Tri to allow them to better compete with larger players such as state-backed Telkomsel and Axiata-controlled XL Axiata. Having initially entered into an exclusive non-legally binding MoU, valid until 30 April 2021, the MoU was subsequently extended to 30 June 2021 and then again to 16 August 2021 to provide more time to complete the ongoing due diligence and negotiate the final terms of a possible combination of the entities. At the time, the Hong Kong firm said: ‘While substantial progress has been made and substantive agreement has been reached on a number of key commercial issues, additional time is needed by the parties to finalise definitive agreements and, once finalised, to seek their respective internal corporate approvals … Pending and subject to such approvals, no decision has been taken to proceed with any transaction.’

Indonesia, CK Hutchison, Hutchison 3 Indonesia (Tri), Indosat Ooredoo Hutchison (IOH), Ooredoo Group