Qatar-based Ooredoo and CK Hutchison Holdings of Hong Kong have announced the completion of the merger of their respective telecommunications businesses in Indonesia, Indosat Ooredoo and Hutchison 3 Indonesia (Tri), to create an enlarged entity named Indosat Ooredoo Hutchison (IOH).
The newly combined IOH is now the archipelago’s second largest mobile network operator behind Telkomsel (Telekomunikasi Selular), with estimated annual revenue of approximately USD3 billion. Further, the combination is expected to result in annual savings of between USD300 million and USD400 million, realised over the next three to five years, hopefully facilitating deeper innovation and network enhancements, including the rollout of 5G infrastructure.
Indosat Ooredoo COO Vikram Sinha becomes the chief executive officer of the new company, with the current CEOs of Indosat Ooredoo and Tri joining a board of commissioners for the merged company.
Ooredoo and CK Hutchison retain a controlling 65.6% ownership stake in the merged company, which will remain listed on the Indonesian Stock Exchange, with the government of Indonesia retaining a 9.6% shareholding, Tiga Telekomunikasi Indonesia holding a 10.8% shareholding, and other public shareholders holding approximately 14.0%.