Qatar Telecom QSC (“Qtel”) and Singapore Technologies Telemedia Pte Ltd (“ST Telemedia”), a leading information-communications company with operations in the Asia-Pacific, the Americas and Europe, have announced that their jointly held subsidiary, Asia Mobile Holding Pte. Ltd. (“AMH”), will sell its 40.8% interest in PT Indosat Tbk (“Indosat”) to Qtel.
Under the terms of the Agreements dated 6 June 2008, Qtel has agreed to pay S$2.4 billion (US$1.8 billion) in cash to acquire AMH’s total interest in Indosat.
Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, Qtel’s Group Chairman, said, “We are very delighted to increase our strategic stake in Indosat. The transaction demonstrates Qtel’s commitment to Indonesia and its rapidly developing infrastructure. With this transaction, the Group will service nearly 44 million customers in 16 countries. We look forward to working with the management and employees of Indosat and applaud them for their excellent record.”
Qtel’s Deputy Chairman, Sheikh Mohammed Bin Suhaim Al Thani, said “We are pleased to welcome Indosat to the Qtel family. Indosat represents a significant and exciting investment for the Qtel group. We will invest significantly in Indosat to support its growth and help it to achieve its full potential.”
Dr. Nasser Marafih, Qtel’s Chief Executive Officer, said “This investment is a logical progression of Qtel’s growth strategy, and allows Qtel to broaden its interests in Indonesia, the fourth most populous country in the world. We believe that Indonesia is a high growth market for telecommunications and that Indosat is very well placed to compete in that market.”
Mr Lee Theng Kiat, President and Chief Executive Officer of ST Telemedia, said “QTel is a global telecom company with strong management and clear vision. I am sure with the foundation we have given to Indosat in the last 5 years, following its record performance in 40 years in 2007, Qatar Telecom can now take it to greater heights.”
This transaction will not affect ST Telemedia and Qtel’s holding in AMH or investments in other markets made by ST Telemedia and Qtel through AMH. ST Telemedia will no longer have any involvement in Indosat. The 40.8% interest remains subject to a Supreme Court appeal in Indonesia. AMH will continue to own a stake in StarHub Ltd, Singapore’s second largest info-communication company, and Shenington Investments Pte Ltd, a holding company with telecommunication assets in Cambodia and Lao PDR.