Indonesian mobile phone and cellular voucher distributor PT Tiphone Mobile Indonesia (TELE) has signed a loan facility agreement worth $187.7 million to support the company’s business expansion.
The firm announced that it had inked the deal with syndicated banks consisting of Standard Chartered Bank (Jakarta branch) of the Hong Kong Shanghai Banking Corporation, PT Bank CIMB Niaga (BNGA) and PT Bank Central Asia (BBCA).
Tiphone corporate secretary Semuel Kurniawan said that the loan facility would provide it working capital to buy both vouchers and prepaid cards business from Telkomsel — the cellular business arm of state-run telecommunications PT Telekomunikasi Indonesia (Telkom).
Last year, Telkom through its subsidiary PT PINS Indonesia acquired a 24.94 per cent stake in Tiphone.
Telkom innovation and strategic portfolio director Indra Utoyo said Tiphone is planning to expand to new countries and supports Telkom business expansion. According to him, Myanmar and Hong Kong may be the first target countries following the launch of Telkom Kartu As 2 in 1.
With the acquisition, Telkom is hoping to strengthen its distribution business which is run by PINS Indonesia, Utoyo said, adding that Tiphone is currently Telkom’s biggest distributor. “Telkom needs Tiphone to expand PINS,” he explained.
Aside from strengthening PINS, the acquisition was also expected to enlarge Telkom’s business, including its data services, he added.
Utoyo said that Telkom also wanted to expand its device, network and application (DNA) ecosystem. “Tiphone has strengths in device solutions. [Telkom] can enrich [Tiphone] applications and content,” he said.
This year, PINS is focused on expanding its information technology (IT) distribution channel to smaller towns because currently it reaches only big cities, he said.
Tiphone, which was established in 2008, primarily operates in the mobile phone and pre-paid phone credit sector.