Nov 18, 2010

Smart Telecom backdoor listing in FREN

Indebted CDMA-based telephone operator PT Mobile-8 Telecom Tbk (FREN) plans to hold Rp3.7 trillion rights issue. Controlling shareholder in Sinarmas Group's unit PT Smart Telecom will be a standby buyer for the rights issue.
Mobile-8 Corporate Secretary Chris Taufik, as quoted by Bisnis Indonesia today, said Smart Telecom's shareholder will act as standby buyer for the rights issue. The proceed from the rights issue will be used by Mobile-8 to acquire 50% stake in Smart Telecom. It seems Smart Telecom will do a backdoor listing via Mobile-8, the same way with coal mining contractor PT Bukit Makmur Mandiri Utama when PT Delta Dunia Makmur Tbk (DOID) acquired the contractor last year.
To acquire more than 50% stake in Smart Telecom, Mobile-8 requires more than Rp3 trillion financing.

Disclosure: No position at the stock mentioned above.

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