Jakarta, CNBC Indonesia – The ‘hot’ news that Indonesian capital market players have been waiting for has finally been announced. PT Indosat Tbk (ISAT) will officially merge with PT Hutchison 3 Indonesia after at least three negotiations have been carried out and extended.
This merger will keep Indosat as the recipient of the merger with a new name, namely PT Indosat Ooredoo Hutchison Tbk (Indosat Ooredoo Hutchison).
This agreement was announced on Thursday night (16/9), after the two shareholders, namely Ooredoo QPSC (Ooredoo) and CK Hutchison Holdings Limited (CK Hutchison) reached an agreement.
After the merger, Indosat Ooredoo Hutchison will be jointly controlled by the Ooredoo Group and CK Hutchison.
Indosat’s footsteps often steal the public’s attention, from the beginning of its establishment to now joining a telecommunications operator from Hong Kong, and will become the number two market leader (after PT Telekomunikasi Selular/Telkomsel, a subsidiary of PT Telkom Indonesia Tbk/TLKM). Indosat is ready to compete with the much more successful ‘children’, Telkomsel.
Here, the CNBC Indonesia Research Team tries to summarize the steps, some important decisions in Indosat’s 50+ years of working in Indonesia.
The official website notes that Indosat was founded in 1967 as a foreign investment company (PMA) that provides international telecommunications services in Indonesia.
Indosat is one of the first PMA companies since the enactment of the Foreign Investment Law in Indonesia.
American Cable & Radio Corporation (ACR), a subsidiary of a US telecommunications company called International Telephone & Telegraph Corporation (ITT), started Indosat with a capital of US$ 6 million.
Then, in 1980, the Indonesian government decided to acquire Indosat’s shares to support the New Order satellite program at that time.
This decision also experienced resistance from several parties who were afraid that nationalization would have a negative impact on foreign investment because the government was actively raising foreign funds for development.
After becoming a state-owned company, the company then went to the stock exchange in 1994 and managed to raise IDR 724.85 billion IPO (initial public offering) funds from the offering of 103.55 shares (35%) at a price of IDR 7,000 per share. share.
A year later, Indosat and Telkom Indonesia established a joint venture which is one of the first cellular operators and until now dominates the Indonesian cellular telecommunications industry, Telkomsel.
A few years later this partnership broke up, with Telkom becoming the sole controller of Telkomsel after buying Indosat’s shares. Meanwhile Indosat acquired Satelindo shares and established IM3 to compete with Telkomsel.
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