PT Telekomunikasi Indonesia (Telkom) Tbk, Indonesia’s largest telecommunication company, said it has reached a deal to buy Guam’s AP Teleguam Holdings Inc, parent company of telco operator GTA Teleguam.
GTA Teleguam is one of the telecom operators in Guam.
Currently, Guam’s AP Teleguam, the parent company of GTA Teleguam is owned by Japanese private equity firm Advantage Partners.
The deal is routed through Telkom’s US subsidiary – Telkom Internasional USA Inc. (Telin USA) – that is buying out Advantage Partners’ holdings in the Guam-based operator
The deal size was not disclosed about is reported to be around $300 million. AP had earlier hired to find buyers AP Teleguam Holdings.
Guam, which is located in the Pacific Ocean and is a territory of the US, has about 160,000 residents who had a per capita GDP of $28,700 in 2010.
Telkom and GTA Teleguam had earlier worked together through a consortium of international submarine cable construction Souh East Asia – United States (SEA-US) together with other member states to address the increasing bandwidth demand between Asia Pacific and North America.
“The acquisition of GTA will strengthen Telkom Group’s business, especially in international business, that complements the Telin Singapore, Telin Hong-Kong, Telkom Australia, Telkom Taiwan, Telkom USA, Telin Malaysia, Telkom Macau, Telin Timor-Leste Telkom Saudi Arabia, and a branch office in Myanmar. In addition, this acquisition will also strengthen GTA in terms of the financial and technical expertise, that will bring benefit for customers, partners and employees of GTA,” Telkom said in a statement.
According to Honesti Basyir, director of wholesale & international service Telkom, Guam was a very attractive market, and the potential for Telkom Group’s international business was good as its GDP per capita was above the average of countries in Asia. “Furthermore, the human resources are also reliable, as well as the rate of adoption society in the aspects of high telecommunication technology,” he added.