Friday, October 20, 2006

Telkom accomplish Bukaka SingTel acquisition for US$256 million

Giant telecommunication operator PT Telkom Tbk has accomplished the acquisition of assets and operation of PT Bukaka SingTel Indonesia (BSI) through reverse agreement mechanism at around US$256 million.

Arwin Rasyid, Telkom CEO, said yesterday that the acquisition has been completed. He didn't disclose the acquisition price. But Telkom finance director Rinaldy Firmansyah said BSI deserved to get fix investor revenue (FIR) of Rp55.6 billion per month from October 2006 to June 2007 plus Rp44.25 billion/month from July 2007 to December 2010 as compensation. It means Rp2.358 trillion or somewhere around US$256 million.
BSI was established in October 17, 1995 to build telecommunication infrastructure in eastern part of the country under a cooperation agreement with Telkom as the monopolist for the span of 15 years. Shareholder composition was PT Bukaka Telekomindo International/BTI (51.5%), SingTel (40%), and Transpac Capital Pte Ltd (8.5%). BTI is a wholly-owned subsidiary of Bukaka, a group of business controlled by VP Jusuf Kalla's family. Muhammad Abduh, VP's special staff, was once the chairman of BSI with Kalla brothers (Achmad & Suhaeli) as commissioners.
But in July 5, 2002, Green View Finance Offshore Ltd bought all shares Bukaka in BSI at undisclosed price. No information available about Green View Finance Offshore. Whoever, BSI clearly got the deal, with income of Rp44.25 per month in 51 months while Telkom will take care operation, maintenance, and development of the contract. BSI is reportedly invested US$300 million in the project. High return, right?

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Anonymous Anonymous said...

Correction : TELKOM is not a GIANT telecommunication operator, please read the Finance Annual Report 2005 of PT. TELKOM, their contribution for total income PT. TELKOM only 30%

November 14, 2006 8:45 PM  

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