Qtel purchases Indosat for US$1.8 billion

Qtel has completed the purchase of a 40.8 per cent stake in PT Indosat from Asia Mobile Holdings (AMH) for US$1.8 billion and has said it is examining a full takeover.

The company said in a statement that it had acquired Indonesia Communications Limited (ICLM) and Indonesia Communications Private Limited (ICLS), which together hold a 40.8 per cent interest in Indosat.

However, the Indonesian stock exchange has asked Qtel to acquire the rest of the company’s shares as per the country’s merger and acquisition laws.

Qtel chairman Sheikh Abdullah Al-Thani said the company was delighted to increase its strategic stake in Indosat and that the transaction demonstrated Qtel’s commitment to Indonesia and its rapidly developing infrastructure.

“With this transaction, Qtel Group will service nearly 44 million customers in 16 countries. We look forward to working with the management and employees of Indosat and applaud them for their excellent record,” Al Thani stated.

The sale was previously subject to a Supreme Court ruling and had been delayed after the deal came under scrutiny. A Central Jakarta District Court ruling found a company called Temasek – including one of its subsidiaries that partly owns Indosat – guilty of anti-competitive behaviour in Indonesia’s telecoms industry.

Temasek owns Singapore Technologies Telemedia (STT), which has a joint subsidiary with Qtel called Asia Mobile Holdings (AMH) and which confirmed it would sell its 40.8 per cent interest in Indosat to Qtel. This would give the Qatari company majority ownership.

Temasek also owns a 54.14 per cent stake in SingTel, which holds a 35 per cent stake in Telkomsel, Indonesia’s largest mobile operator.

The court offered Temasek a choice of relinquishing at least 50 per cent of its shares in both Telkomsel and Indosat or selling all of its shares in one of the companies within two years of the verdict.

A statement by Qtel said this transaction would not affect STT and Qtel’s holding in AMH or investments in other markets; and that STT will no longer have any involvement in Indosat.