Qtel confirms coordinated tender offer for Indosat shares, January 20

Qatar Telecom (Qtel) has confirmed it will commence two concurrent tender offers on January 20 in Indonesia and the United States for up to 24.19 per cent of the shares of its Indonesian subsidiary PT Indosat. This will bring Qtel’s holdings in Indosat up to a maximum of 65 per cent.

Qtel chairman Al Thani believes completion of the Indosat deal will put the operator in a strong position to push ahead with development plans for Indosat and build it into a leading regional telecoms company

Qtel will offer to purchase up to 1,314,466,755 Series B shares, which are listed on both the Indonesian and New York stock exchanges. The shares are priced at IDR7,388 (US$0.67) each, with the offer due to close on February 18.

“We look forward to a smooth completion of this process, which will put us in a strong position to push ahead with development plans for Indosat and build it into a leading regional telecoms company. This will not only enhance shareholder value, but ultimately benefit Indonesian consumers,” stated Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, chairman of Qtel.

Comm. previously reported the tender offer was shortly pending, following the decision taken by Indonesia’s government in December to allow Qtel to acquire 65 per cent of Indosat without having to spin-off the Indonesian operator’s fixed-line business. A previous condition stated that the Qatari operator would have to transfer Indosat’s fixed business into a separate company, as the maximum foreign ownership allowed for a fixed-line operator is 49 per cent, as opposed to 65 per cent for a mobile operator.

The mandatory tender offers were triggered by Qtel’s earlier acquisition of a 40.81 per cent stake in the Indonesian telco on June 22 last year.