THE HAGUE, The Netherlands—Heavily indebted KPN Mobile said Singapore Telecommunications Mobile will purchase KPN’s 22.28-percent holding in Indonesia’s Telkomsel for US$601 million. SingTel Mobile will also settle KPN Mobile’s remaining technical service obligation to Telkomsel valued at US$25 million.
Telkom, which holds the remaining 77.72 percent of Telkomsel, approved the transaction, KPN said. Closing of the transaction is expected before year-end 2001.
KPN said it would use the net cash proceeds to reduce net debt and called the transaction “another major step in KPN’s non-core assets disposal program.”
“The valuation of Telkomsel achieved by KPN is similar to the valuation of the transaction between Telkom and Indosat, where Telkom acquired a majority stake in Telkomsel by purchasing Indosat’s shares in April 2001,” said Marten Pieters, KPN’s member of the board responsible for the divestment program.
Telkomsel is Indonesia’s largest mobile operator with 2.5 million subscribers and a market share of 47 percent at the end of September.
Earlier this week, KPN finalized the sale of its stake in Hungarian mobile operator Pannon GSM to Telenor. SingTel Mobile has been expanding its holdings in the Asian arena this year.
