Indonesia: Telkom to acquire stakes in three firms, readies $369m for potential deals

State-owned telco firm Telekomunikasi Indonesia is looking to acquire minority shares in three firms from neighboring Malaysia – one of which is Singapore-listed – according to sources of local media Kontan. The telco company is reportedly preparing $369 million (IDR 5 trillion) for the potential deals.

“The deal is expected to close by the end of this year,” the source said, as quoted by Kontan, adding that the move is part of Telkom’s  expansion strategy through M&As.

The total market capitalizations of the three target companies is known to be around IDR 10 trillion ($739 million).

Telkom is also aiming to expand its tower business through unit Dayamitra Telekomunikasi (Mitratel) by merging it with Telekomunikasi Seluler (Telkomsel), another subsidiary. The merger is also expected to be completed by year-end.

Telkom director Harry M Zen said in August that the company was reviewing 10 potential M&As involving fintech, e-commerce, and ICT startups. The company allocates approximately $2 billion for capital expenditure this year.

“We are currently reviewing our business expansion plans for the future. What we can do, we’ll do it ourselves. What we can’t do, we’ll acquire,” he had told reporters in Jakarta then.

Telkom raked in $8.7 billion in revenues last year. The publicly-listed company has repeatedly said that it wants to boost expansion, particularly in the digital space, whether through collaboration or acquisition. It set up a VC firm, MDI Ventures, in 2014 to make this vision a reality.

It has committed $100 million for the VC to invest into global and domestic startups within the span of four years. MDI Ventures’ most recent investment was a pre-Series A round that it led in June into Kofera, a marketing SaaS firm.

Also Read:

Carlyle, Southern Capital in talks to sell Indonesia tower operator STP at $1b valuation

Indonesia: Telkom sets aside $2b for capex, eyes 10 potential M&A deals

Indonesia lender BRI hires Telkom exec to boost fintech, to form VC unit

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.