Ionesia’s state-owned PT Telekomunikasi Indonesia (Telkom) is lanning to buy a stake in PT Bakrie Telecom through a rights issue to consolidate the two companies’ CDMA operations. Bakrie Telecom’s assets are estimated to be worth $1 billion. The combined entity will be ranked as the fourth largest cellular operator with more than 70 per cent share of the CDMA market.
Following the deal, while Telkom is likely to hold 30 per cent stake in the combined entity, the Bakrie Group’s 39 per cent stake may be reduced to 30 per cent, with the rest owned by the public.
The Indonesian government is likely to support the merger as long as it will be beneficial to the state-run operator.
