Jakarta. Telekomunikasi Indonesia, or Telkom, the country's largest telecom company, wants to acquire a majority stake at Malaysian satellite operator TS Global Network, in its regional expansion effort.
Under a conditional sale purchase agreement signed on Friday (24/11), Telekomunikasi Indonesia International, or Telin, Telkom's international arm, will buy up to 70 percent shares in TS Global Network for 108.5 Malaysian ringgit ($26 million), Andi Setiawan, Telkom's vice president for investor relations said in a statement for the Indonesian Stock Exchange.
The agreement is subject to the approval of Malaysian authorities.
"This partnership and alliance is our effort to expand in the regional market and realize our vision to be a digital telecommunications company," Andi said.
TS Global Network is Malaysia's largest operator of a very small aperture terminal (VSAT) satellite communications system, serving corporate clients in the agriculture, mining, government and banking sectors. TS Global Network also operates in Brunei and Myanmar.
Telkom established Telin a decade ago to spearhead its overseas expansion. Telin is now present in 11 countries, including Australia, Saudi Arabia Singapore and Timor Leste. It now accounts for 3 percent of Telkom's $9 billion annual revenue.