Indonesia’s largest telecommunications company by revenue and subscribers PT Telekomunikasi Indonesia (Telkom) has reportedly abandoned plans to spend up to USD1 billion to buy the region’s biggest submarine cable operator Pacnet. Reuters quotes Telkom’s Arif Yahya as saying. ‘We cancel our plan to buy Pacnet because it doesn’t bring added value to the company,’ he said.
TeleGeography’s GlobalComms Database reports that in May this year Telkom’s chairman Jusman Syafii confirmed that his company was weighing up a takeover deal for Pacnet but denied it had already submitted a bid for the Hong Kong/Singapore-based undersea cable operator, which according to the Indonesian firm was willing to put up to 100% of its shares on the table. The cable operator, owned by groups including Ashmore Investment Management and Clearwater Capital Partners, put itself for sale last year after its IPO plan was undermined by the volatile market. It has reportedly appointed Credit Suisse and Goldman Sachs to advise on the sale.