Indonesian state-owned telco firm, Telekomunikasi Indonesia, has agreed to acquire 70 per cent stake in Malaysian satellite operator TS Global Network (TSGN) for 108.5 million ringgit ($26 million), a filing to the Indonesian Stock Exchange revealed.
The deal, carried out by Telkom Indonesia’s subsidiary Telekomunikasi Indonesia International (Telin), will be subject to the approval of Malaysian authorities.
“This partnership and alliance is our effort to expand in the regional market and realize our vision to be a digital telecom company,” Andi Setiawan, Telkom’s vice president for investor relations, said in the firm’s statement.
He added that the acquisition will “increase synergy and empowerment of assets and resources”.
Telkom and TS Global Network have been collaborating with each other since 2010. The Malaysian firm is the largest VSAT satellite operator in the country, serving corporate clients in the agriculture, mining, government, and banking sectors. It also has presence in Brunei and Myanmar.
Telkom Indonesia had in October told local media that it was looking to acquire shares in three firms from Malaysia – one of which was Singapore-listed. The telco company was reportedly preparing $369 million a warchest for the potential deals.
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 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.