Indosat and Tri Officially Announces 85.6 Trillion Rupiah Merger
Both companies will merge into "Indosat Ooredoo Hutchison"
PT Indosat Ooredoo Tbk (IDX:ISAT) officially announced a merger with PT Hutchison 3 Indonesia (H3I) with an agreed value of $6 billion or 85.6 trillion Rupiah. Through its parent company Ooredoo Group and CK Hutchison, both companies will merge into "Indosat Ooredoo Hutchison".
Currently, Ooredoo Group owns 65% of Indosat Ooredoo shares through Ooredoo Asia. Through this merger, CK Hutchison will acquire 21.8% of Indosat Ooredoo Hutchison. CK Hutchison will also acquire 50% of Ooredoo Asia by exchanging its 21.8% shares in Indosat Ooredoo Hutchison for 33% in Ooredoo Asia.
The Hong Kong-based telecommunications conglomerate will grab an additional 16.7% in the Ooredoo Group for $387 million or IDR 5.5 trillion. Both parties will have a 50% ownership interest in Ooredoo Asia, which will be named Ooredoo Hutchison Asia, and own 65.6% shares and control over Indosat Ooredoo Hutchison.
In terms of post-merger, Indosat Ooredoo Hutchison will remain listed on the Indonesia Stock Exchange (IDX), with the Indonesian government holding 9.6% of the shares, PT Tiga Telekomunikasi Indonesia 10.8% of the shares, and the public about 14% of the shares.
Indosat Ooredoo shareholders recommended Vikram Sinha and Nicky Lee as Chief Executive Officer (CEO) and Chief Financial Officer (CFO) at Indosat Ooredoo Hutchison, respectively. Moreover, Ahmad Al-Neama and Cliff Woo will remain the President Director & CEO of Indosat Ooredoo and CEO of H3I until the merger process is complete.
Aiming for the second place
Considering its scale, financial capabilities, expertise, and network development, Ooredoo Group's Managing Director, Aziz Aluthman Fakhroo targets this consolidation to bring Indosat Ooredoo Hutchison as the second largest telecommunications operator in Indonesia with projected annual revenues of up to $3 billion.
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