Telkom to Wrap up 25% TELE Acquisition

PT Telekomunikasi Indonesia (TLKM IJ, BUY, TP: IDR3,200) will soon wrap up the acquisition of 25% PT Tiphone Mobile Indonesia (TELE IJ, BUY, TP: IDR1,000) shares. TLKM through its subsidiary, PT PINS Indonesia, has acquired 1.11 bn shares of TELE (15%) for IDR876.7bn with Sales & Purchase Agreement (SPA) signed on 11 September 2014. Later on, TELE will conduct a non-preemptive rights issue for 638.05 million shares (10%) on 18 September 2014 at offer price IDR812.2/share. PINS will absorb this TELE non-preemptive rights for IDR518.23bn.