Called Backdoor Listing through Indosat, This is Leaked by Tri Boss
Jakarta, CNBC Indonesia – The conundrum of the merger news between Indosat Ooredo and Tri Indonesia is slowly being revealed even though the ‘curtain’ has not yet fully opened.
The controlling company PT Indosat Tbk (ISAT), Ooredoo QPSC, from Qatar has signed an exclusive and non-legally binding Memorandum of Understanding (MoU) with CK Hutchison Holdings Limited (CK Hutchison), the parent of Tri Indonesia, at the end of December 2020 .
However, market reports say that what happened was not a merger, but the position of Indosat, which is a public company on the Indonesia Stock Exchange (IDX), made it possible for Tri to conduct backdoor listing in the capital market.
Backdoor listing is an act of acquisition by a non-public company to a company whose shares are listed on the stock exchange.
Responding to this, Deputy President Director of Tri Indonesia, Danny Buldansyah, said that all options were still being reviewed by the two shareholders.
“Indeed, we know there is this between Hutchison Tri and Indosat Ooredoo, the other one public listed company already on the Jakarta Stock Exchange [BEI]. Meanwhile, Tri Indonesia is a private company, “he said in the webinar” Mergers and Acquisition Season of Telecommunications Operators “Alinea Forum, Wednesday (3/2/2021).
“Many people are asking if this is through listing background“We are still studying what scheme is the most appropriate when there is a consolidation,” he said.
However, for sure, said Danny, both Ooredoo and Hutchison will have a significant role in the company which will later consolidate.
He said the MoU was signed in December by the two shareholders. “The MoU is non-binding (MoU). We and the shares agree not to talk with other parties regarding the issue of consolidation and its ending at the end of April,” he explained.
According to him, since the signing of the MoU, both parties have collected data. “Both parties have appointed consultant each one is good consultant legal, financial, and others, we are starting to exchange data, “he said.
“So hopefully we will finish everything before the end of April if it can be accelerated even better. That is the stage until now,” he added.
According to Danny, the two shareholders are world-class business actors in the telecommunications sector, so this MoU certainly does not lead to a tendency to fail.
“Not only for fun. The signature has been done. But both parties are very serious in responding to and following up on the MoU,” he said.
It hopes that the consolidation (although it does not mention a specific merger) will bring benefits.
“These are 2 companies that stand on their own and are expected to unite. Of course it is hoped that when the two companies are united there will be a synergy of two companies that bring profit, it is hoped that 1 + 1 = 2 but 1 + 1 can become 4 or 5.”
“The hope is that the realization will not be easy. That the merger or consolidation can occur as soon as possible both administratively and in terms of regulation. We will focus on it first before we talk about what to do after the merger.”
According to him, in principle, consolidation in the telecommunications industry has been a discussion for a long time. This is because there are still too many cellular operators.
“Currently there are six operators, ISAT, Telkomsel, XL, Tri, Smartfren and Sampoerna Telkom Indonesia.”
“Well then from the licensing system, especially for limited resources, also the division is very segmented. In the 900 MHz spectrum, it is divided into three operators, 1,800 MHz is also divided by 4 operators, then 2,100 MHz is divided among 4 operators. 2,300 MHz, in fact, some are national and not yet national. “
For information, related to the consolidation of ISAT and Tri, on December 28, 2020 an MoU was signed between Ooredoo QPSC, from Qatar and CK Hutchison Holdings Limited (CK Hutchison).
The memorandum of understanding relates to a potential transaction plan to combine two telecommunications companies in Indonesia, namely, Indosat and PT Hutchison 3 Indonesia, a subsidiary of CK Hutchison, although it does not specifically use the word merger.
The MoU exclusivity period is valid until April 30, 2021
“Ooredoo is in the early stages of assessing the benefits of these potential transactions. As part of our corporate strategy, we regularly review our strategic priorities and market position across all of our operations, and their contribution to the Ooredoo Group,” wrote Ooredoo’s management, in a press release obtained. CNBC Indonesia, Monday (28/12/2020).
[Gambas:Video CNBC]
(bag bag)