Indonesia's PT Telkom has arranged to acquire a majority stake in Malaysian satellite operator TS Global Network for up to $26 million.
The company's international division Telin has entered a conditional purchase agreement to acquire up to 70% of the shares in TS Global Network for 108.5 million ringgit, the Jakarta Postreported. The deal requires the approval of Malaysian regulators.
According to Telkom's VP for investor relations, the deal is aimed at expanding Telin's effort to expand in the APAC market.
Telin currently operates in Singapore, Hong Kong, Timor-Leste, Australia, Macau, Taiwan, Malaysia, the US, Myanmar and Saudi Arabia, and has points of presence in 52 areas worldwide. The company accounts for roughly 3% of Telkom's $9 billion in annual revenue.
The acquisition is also aimed at realizing PT Telkom's vision of becoming a digital telecommunications company.
TS Global Network is Malaysia's leading VSAT operator with customers in the agriculture, mining, government and banking sectors. The company also operates in the markets of Brunei and Myanmar.