Source: Kontan, use google translate to change to english..
SingTel is facing pressure from different multitudes, and this is additional blow to it. I'm sure SingTel wouldn't want to dispose but if due to whatever reasons they end up selling the stake that would be the biggest blow to singtel. Telkomsel is the cashcow (bharti is the crown jewel, but the revenue contribution is low and bharti is not paying any dividends).
* Telkomsel contributes almost 15% to profit (Q1-2010, 161 million out of 968 million).
* Indonesian market seems to be normalizing where as Bharti still facing stiff competition.
However this is not the first time Telkom tried to buy back the stake or reduce singtel influence. Last year they've tried with the tower business (here), mentioned that they are ready to purchase SingTel stake (here)
If sources were to be believed the ministers & management of telkom meeting SingTel today itself and want to get some solid progress. Not sure how singtel can handle this and if SingTel to divest they need to quickly find alternate/replacement for their investment.
SingTel is facing pressure from different multitudes, and this is additional blow to it. I'm sure SingTel wouldn't want to dispose but if due to whatever reasons they end up selling the stake that would be the biggest blow to singtel. Telkomsel is the cashcow (bharti is the crown jewel, but the revenue contribution is low and bharti is not paying any dividends).
* Telkomsel contributes almost 15% to profit (Q1-2010, 161 million out of 968 million).
* Indonesian market seems to be normalizing where as Bharti still facing stiff competition.
However this is not the first time Telkom tried to buy back the stake or reduce singtel influence. Last year they've tried with the tower business (here), mentioned that they are ready to purchase SingTel stake (here)
If sources were to be believed the ministers & management of telkom meeting SingTel today itself and want to get some solid progress. Not sure how singtel can handle this and if SingTel to divest they need to quickly find alternate/replacement for their investment.
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