Indonesia's PT Telkom plans to complete the acquisition of a 25% stake in handset distributor Tiphone this week.
Telkom subsidiary PT PINS Indonesia will acquire around 638 million shares in the distributor this week, in the second tranche of a two-tranche private placement, the Jakarta Postreported.
When taken together with the purchase of around 1.75 billion shares last week, Telkom will have spent 1.4 trillion rupiah ($116.6 million) for a 25% stake in Tiphone.
The operator is buying into Tiphone in part to strengthen PINS' own distribution business, as well as Telkom's presence in the pre-paid credit market. Tiphone earned revenue of 6.31 trillion rupiah during the first half of the year, up 40.5% from a year earlier.
Telkom first revealed its plans to acquire its stake in Tiphone in June. At the time, the operator was considering acquiring an up to 30% share.
Tiphone meanwhile indicated plans to use part of the proceeds from the stake sale to help acquire another handset distributor.