Telkom to complete Tiphone stake buy this week

Dylan Bushell-Embling
17 Sep 2014
Daily News

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.

Related content

No Comments Yet! Be the first to share what you think!