China’s largest fixed operator is discussing a deal with Excelcomindo’s largest shareholder, the local Rajawali group, which holds a 60 per cent stake. This group includes Indonesia’s PT Telekomindo Primabhakti. Other shareholders include Verizon Communications [VZ], which holds 23.1 per cent via a holding company; Asia Infrastructure Fund Ltd with a 12.7 per cent stake; and Japan’s Mitsui & Co Ltd [MITSY] with a 4.2 per cent holding. According to the report, the talks are at an early stage and could still fall through.
This is the first attempt by China Telecom to expand beyond its own borders, and it is currently in the midst of a domestic acquisition of provincial units from its mainland parent. Chine Telecom could face strong competition for Excelcomindo from Telekom Malaysia [TLMM.KL] and Maxis [MXSC.KL], both of which are reportedly keen on Excelcomindo.
Excelcomindo was formed in November 1995, and in 1996 it officially launched its mobile phone service to the Indonesian public. It currently has about 16 per cent of the country’s mobile market, with an estimated 2.5 million subscribers.
This article was based on material originally published by ComputerWire.
