SingTel acquires KPN's stake in Indonesia's Telkomsel

World IT Report, Apr 9, 2003

As part of its bid to become the leading pan-regional telecom carrier, Singapore Telecom has signed a definitive agreement with Dutch KPN to purchase KPN's 22.3 per cent stake in PT Telekomunikasi Selular ("Telkomsel"), for a cash consideration of $602 million.

This investment is SingTel's third largest foreign investment following its $9 billion acquisition of Australia's Optus and its investment in the Bharti Group of India.

State-owned PT Telekomunikasi Indonesia, domestic fixed-line monopoly, owns the remaining 77.7 percent of Telkomsel.

With the purchase, SingTel replaces KPN as PT Telkom's strategic partner in Telkomsel, and assumes the rights and responsibilities under the shareholders' agreement previously held by KPN. SingTel will also be assuming the liability for commitments made by KPN, under a technical assistance agreement with Telkomsel, for an amount of $25 million.

Telkomsel is Indonesia's largest mobile service provider with 2.2 million subscribers as at June 2001, giving it an estimated 47 percent share of the Indonesian mobile service market. -(World IT Report)