Indonesia’s telco operators Telkom and Telkomsel have signed a deed of spin-off to integrate fixed broadband provider IndiHome into Telkomsel.
IndiHome will legally be under Telkomsel’s management effective July 1 after Telkomsel’s increase in capital associated with the transaction is notified to Indonesia’s Minister of Law and Human Rights.
Following the completion of the IndiHome integration process, Telkom's effective ownership in Telkomsel will become 69.9%, while Singapore Telecommunications Z74 ’ (Singtel) Z74 ownership in Telkomsel will become 30.1%.
"After this, IndiHome will synergise with Telkomsel to bring innovations that provide maximum results for the company and all stakeholders,” says Telkom CEO Ririek Adriansyah.
Shares in Singtel closed 5 cents higher or 2.01% up on June 27 at $2.53.
