HONG KONG/JAKARTA June 12 (Reuters) - State-controlled PT Telekomunikasi Indonesia Tbk has agreed to pay about $300 million to buy Pacific island Guam’s telecom and pay-television operator GTA, people familiar with the matter told Reuters, in what will be the biggest overseas acquisition by the Indonesian firm.
Earlier this month Indonesia’s biggest telecom operator, known as Telkom, with a market value of $21.7 billion, agreed to buy GTA from Japanese private equity firm Advantage Partners without disclosing the deal’s value. The people familiar with the matter declined to be identified as the deal value wasn’t public.
The acquisition comes as Telkom gears up efforts to expand overseas after a raft of mostly smaller deals in Indonesia in the past five years.
GTA provides domestic wireless, fixed-line, broadband and pay-television services in Guam. But the island’s geographic location also gives GTA a strategic role as a landing point in undersea cable traffic between Asia and the United States, meaning the purchase may help Telkom boost its global business profile.
Telkom director Honesti Basyir declined to confirm the deal’s value in a text message to Reuters. But he said the company will fund the acquisition through bonds and equity.
Reporting by Denny Thomas in HONG KONG and Cindy Silviana in JAKARTA; Additional reporting by Eveline Danubrata in JAKARTA; Editing by Kenneth Maxwell