Previously I've mentioned it here, that Telkom wants to buy back shares from SingTel. Now seems there is more action. CEO of Telkom made it public that they are talking with SingTel. If this is true, then this is a big blow to SingTel and SingTel will not give up unless there is political/regulatory pressures.
Showing posts with label Telkomsel. Show all posts
Showing posts with label Telkomsel. Show all posts
Friday, May 20, 2011
Friday, April 8, 2011
Telkom (Indonesia) want to buyback the share in Telkomsel from SingTel
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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