An employee of Telekomunikasi Indonesia (Telkom) at the service outlet of the Telkom headquarters in Jakarta in this June 11, 2010 file photo. (Reuters Photo/Supri)

Indonesia's Telkom Says Terminating Deal With Tower Bersama


SEPTEMBER 09, 2015

Jakarta. Indonesia’s largest telecoms firmTelekomunikasi Indonesia (Telkom) said it’s scrapping a share-swap deal that would have given a 49 percent stake in the state-controlled company’s tower operator unit to Tower Bersama Infrastructure.

Telkom said in a statement on its website that it “is in the process of termination due to (Telkom) commissioners’ request to terminate the transaction,” without disclosing reasons for the commissioners’ move. The accord would have given Tower Bersama shares in Telkom’s Dayamitra Telekomunikasi (Mitratel) business.

In July, the companies said they had extended the deadline for discussions on the deal to end-March despite Indonesia’s state enterprises minister Rini Soemarno saying the firm’s commissioner and directors had agreed to drop the deal. First announced last October, the agreement would have given Telkom a 5.7 percent stake in Tower Bersama.

Tower Bersama wasn’t immediately available for comment.

Shares in Tower Bersama fell 1.2 percent on Wednesday, while Telkom’s shares were up 0.4 percent, in line with a 0.4 percent increase in the Indonesian stock index.