Indonesia approved the merger of the local telecommunications divisions of Ooredoo in Qatar and CK Hutchison in Hong Kong on December 4, valued at approximately US$6 billion. A statement from the country’s Ministry of Transportation stated that the deadline for the merged entity to complete the merger and provide coherent services is 2025. The Indonesian authorities approved the merger in November. CK Hutchison Holdings and Ooredoo announced the transaction in September last year and stated that they will create a combined entity called Indosat Ooredoo Hutchison, which will become the next…
Indonesia approved the merger of the local telecommunications divisions of Ooredoo in Qatar and CK Hutchison in Hong Kong on December 4, valued at approximately US$6 billion. A statement from the country’s Ministry of Transportation stated that the deadline for the merged entity to complete the merger and provide coherent services is 2025.
The Indonesian authorities approved the merger in November.
CK Hutchison Holdings and Ooredoo announced the transaction in September last year and stated that they will create a combined entity called Indosat Ooredoo Hutchison, which will become the country’s second largest telecommunications company, second only to the state-backed PT Telekomunikasi Selular, or Telkomsel, has an estimated annual revenue of approximately $3 billion.
“Contribute to Indonesia’s digital transformation”
The ministry stated that under the merger agreement, Indosat must add at least 11,400 tower sites by 2025 and expand its cellular service in the same year to cover at least 7,660 villages or areas throughout the archipelago.
It added that the company also needs to improve its service quality by 2025 by increasing the speed of data download and upload by at least 12.5%.
Indonesia’s Minister of Telecommunications, Johnny Gerard Plate, stated: “We hope that the national telecommunications industry (…) will be more productive and efficient to support the country’s digital transformation.” He also pointed out that the merger will further strengthen Indosat. Capital structure.
Vikram Sinha, who has been the chief operating officer of Indosat Ooredoo since 2019, has been appointed as the chief executive officer of the combined company.
Expected to produce significant synergies
Ooredoo Group and CK Hutchison added that the merger will achieve “significant operational synergies that will increase cost efficiency and promote deeper innovation and network enhancements, including the launch of 5G in Indonesia.”
Indosat Ooredoo Hutchison will be controlled by Ooredoo Group and Changjiang Hutchison, with a joint holding of 65.6%. The new company will continue to be listed on the Indonesian Stock Exchange under the stock code ORDS. The Indonesian government holds 9.6% of the shares, while Tri Indonesia, the local mobile phone division of CK Hutchison Whampoa, will hold 10.8% of the shares, and public shareholders will hold 14%. Of shares.
