<article>Indonesia’s largest telecom operator <a style="color: #000080;" href="http://www.telkom.co.id/" target="_blank">PT Telekomunikasi (Telkom) Indonesia Tbk (TLKM)</a> is raising Rp 1.62 trillion ($123 million) from a share sale.The company is offering 864 million treasury shares at Rp 3,820 each, according to a report by Reuters.</article>

Indonesia’s largest telecom operator <a style="color: #000080;" href="http://www.telkom.co.id/" target="_blank">PT Telekomunikasi (Telkom) Indonesia Tbk (TLKM)</a> is raising Rp 1.62 trillion ($123 million) from a share sale.The company is offering 864 million treasury shares at Rp 3,820 each, according to a report by Reuters.
According to the plan, Telkom will use the funds for capital expenditure and other working capital needs. Credit Suisse has been appointed as a joint global coordinator for the transaction.
Telkom intends to spend Rp 28 trillion ($2.1 billion) on capital expenditure this year. About 80 per cent of that sum will be allocated to digital business.
“We will utilise up to 25 per cent of the expected 2016 revenue for digital business development in mobile, 3G, broadband and fiber optics,” president director Alex Sinaga said recently.
The state-owned operator is scouring key markets in southeast Asia, Japan, South Korea and the US for potential acquisitions, a top official of Telkom said. The inorganic strategy is to further strengthen the digital business, which accounts for 50 per cent of the telecom operator’s revenues.
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The operator booked a first-quarter profit of Rp4.59 trillion ($347.72 million), an increase of 20.4 per cent compared to Rp3.81 trillion in the same period last year. With a 16.6 per cent revenue increase to Rp27.54 trillion and Earnings before interest, tax, depreciation and amortization (EBITDA) rising 18.8 per cent to 14.66 trillion.
Earlier this month, the company dropped the deal to buy Guam telecom firm AP Teleguam Holdings Inc as there was no certainty on the approval process by the U.S. regulator.
Telkom ended an agreement to buy the company from Japanese private equity firm Advantage Partners, the state-controlled Indonesian company said in a filing with the stock exchange, without disclosing the reason.
Telkom previously agreed to pay about $300 million to buy AP Teleguam’s GTA, which has businesses including internet and television services in the U.S. island-territory, sources familiar with the matter said last year.
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Indonesia’s Telkom to raise $123m from share sale

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Indonesia’s Telkom to raise $123m from share sale

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