Dec 10, 2010

Bakrie Telecom & Telkom to sign MoU

PT Bakrie Telecom Tbk (BTEL) and PT Telekomunikasi Indonesia Tbk (Telkom) plans to sign a memorandum of understanding (MoU) regarding to the proposed consolidation between ESIA, BTEL's brand, and Flexi, Telkom's CDMA brand.
Tanri Abeng, Telkom's President Commissioner, said both companies have done assets valuation. "There will be a MoU between Telkom and Bakrie Telecom, followed by due diligence and negotiation," he said.
According to him, if both companies reach agreement, the assets would be consolidated in a bid to boost the value.
"It might be a rights issue through a new company from merger," he said. 
The new company, which will be set up after merger, will hold rights issue. Hence, Bakrie Group, Telkom Group, and public investors could be shareholders at the new company.

Disclosure: No position at the stock mentioned above.
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