The ICT industry currently makes up 2.7 percent of Indonesia's Rp 900 billion gross domestic product (GDP), market research firm International Data Corporation said. (Antara Photo/Basri Marzuki)

Tower Bersama Pushes Forward With Mitratel Acquisition Plan

MAY 28, 2015

Jakarta. Listed telecommunication tower operator Tower Bersama Infrastructure is continuing with its plan to acquire a unit of state-owned Telekomunikasi Indonesia, or Telkom, despite an alleged rejection of the plan from Telkom’s board of commissioners.

“I don’t know the details on the matter since it concerns the internal management of Telkom. When I asked during their annual shareholders' meeting, this process is still ongoing and the deal with Tower Bersama will still be upheld,” Herman Setya Budi, president director at Tower Bersama, said during a public presentation in Jakarta on Wednesday.

The president director also noted that the conditional sales purchase agreement, signed last October, will be valid until June and can be subject to extension “if both parties are mutually benefited with the extension.”

Tower Bersama — majority-owned by investment firms Saratoga Capital and Provident Capital — signed a share-swap deal for a 49 percent stake in Telkom’s subsidiary, Dayamitra Telekomunikasi (Mitratel).

Under the agreement, Tower Bersama will have 49 percent of Mitratel and in exchange, Telkom will receive 290 million new shares, or equal to 5.7 percent, at Tower Bersama.

However, State Enterprises Minister Rini Soemarno said in April that the board of commissioners at Telkom had rejected the deal without giving the reason, according to a report by Reuters.