Tiphone to Acquire Simpatindo for Rp 500 Billion
Avi Tejo Bhaskoro - 7 October 2014
It didn’t take too long for PT Tiphone Mobile Indonesia (Tiphone) to turn a splash of funding given by PT Pins Indonesia (one of Telkom’s subsidiaries) into something which boosts its business. As matter of fact, Tiphone has planned to acquire 100% of PT Simpatindo Multimedia’s (Simpatindo) shares by spending around Rp 500 billion by the end of this year.
In regard to the plan, Tiphone’s Chairman Hengky Setiawan stated confirmed that the acquisition of Simpatindo is one of his team’s attempts to push the distribution of cellphone credit.
“We attempt to strengthen our distribution network, from previously 200.000 re-sellers to 300.000 by next year,” Setiawan told The Jakarta Globe (3/10).
Considering that the business expansion that Tiphone has planned will consume a large amount of money, it’s quite obvious that the company will make use of the funding from PT Pins, which covers 25% of its shares (around Rp 1,1 trillion) as its development foundation. It’s even reported that the funding is planned to cover 30% of Tiphone’s shares in the future.
Question is, how significant is Simpatindo to Tiphone? Well, to get a clear image of this Tiphone’s decision, it’s fundamental to know what actually Simpatindo is. The company focuses its services on telecommunication distribution and multimedia products, including electronic top up of Indonesia’s telecommunication operators. Interestingly, Simpatindo is actually one of official credit dealers of Telkom’s products (Telkomsel and Telkom Flexy).
That being said, no wonder Tiphone really intends to acquire the company, as it can be a gateway for not only Telkom group to strengthen its credit business, but also for Tiphone to push the procurement of its smartphones to prominent vendors.
[Header illustration: Shutterstock]