Telkom to Integrate IndiHome into Telkomsel
Telkom Group ensures that the FMC process is carried out transparently and in accordance with the prevailing laws and regulations. MHP Law Office are acting as legal advisor for Telkomsel.
6 April 2023
Telkom and Telkomsel have signed a Conditional Spin-off Agreement (CSA) to spin off and integrate IndiHome into Telkomsel. IndiHome is 100% owned by Telkom and the largest fixed broadband business in Indonesia.
The spin off and integration are in line with Telkom’s Fixed Mobile Convergence (FMC) initiative, and the signing of this preliminary agreement is a crucial step in implementing TelkomGroup’s strategy to bring about more choices and a better broadband experience, realize digital inclusion in Indonesia, and strengthen TelkomGroup’s business.
The transaction will be value accretive for Telkomsel and has received the support of Telkomsel’s shareholders: Telkom and Singtel. For Singtel, this integration aligns with its strategic reset principles of pivoting towards higher growth businesses, while reinforcing its commitment to Indonesia.
The CSA is expected to be completed in the early third quarter of 2023, subject to the fulfillment of certain conditions, including the receipt of approvals from Telkom's shareholders.
Following the CSA signing, a series of integration preparatory processes of fixed and mobile broadband services for retail customers will be underway. In this regard, Telkom Group ensures that the FMC process is carried out transparently and in accordance with the prevailing laws and regulations, including in compliance with the regulation of the Financial Services Authority (OJK).
For this transaction, Mandiri Sekuritas and Goldman Sachs are acting as financial advisors to Telkom. Hadiputranto, Hadinoto & Partners is acting as legal advisor to Telkom. While Nurhadian Kartohadiprodjo Noorcahyo Legal (NKN Legal), Muhtar Halim & Partners Law Office (MHP Law Office), and Purbadi & Associates are acting as legal advisor for Telkomsel, and PT HSBC Sekuritas Indonesia (HSBC) acting as financial advisor for Telkomsel. Citi is acting as financial advisor to Singtel. Hiswara Bunjamin & Tandjung is acting as legal advisor to Singtel.