Wednesday, December 28, 2005

Indonesia govt to buyback Indosat from Temasek

Indonesia government had sent a letter to Temasek Holdings to buyback 41.8% shares of telecommunication provider PT Indosat Tbk from the Singapore government-owned company.
Source at the ministry of state-owned enterprise (MSOE) said the letter was sent in December 14, 2005, almost two years after Temasek, through its wholly-owned subsidiary ST Telemedia, acquired 41.8% shares of Indosat, that time was state-owned company, at the cost of US$650 million.
It is not clear why Indonesia government decided to buyback Indosat or whether Temasek is willing to sell it back.
But even if Temasek is willing to sell Indosat back to Indonesia government, the price would likely be double the price it paid two years ago.
Indosat is the second largest telecommunication company in Indonesia behind PT Telkom Tbk, a state-owned company. Temasek has significant stakes in PT Telkomsel, a subsidiary of Telkom, through SingTel. Telkomsel is the largest cellular operator in Indonesia.

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