SURABAYA, Indonesia-Indosat confirmed its plan to merge its cellular subsidiaries Satelindo and Indosat-M3 in compliance with the company’s strategy to strengthen its core business in the cellular sector in addition to its backbone network, multimedia and Internet, and fixed-line access businesses.
Regarding the merger process, Indosat is currently on track to select a financial advisor. Widya Purnama, Indosat’s chief executive officer (CEO), said a financial advisor is needed for negotiating with the eight creditors. Furthermore, he said the merger is planned to be completed in 2004.
In 2002 alone, the cellular sector contributed US$367 million or 48.35 percent of Indosat’s total revenue. Currently, the two companies represent 30 percent of the country’s cellular market.
