A report last week suggested that PT Telekomunikasi Indonesia had submitted a bid to buy PacNet in a deal that could value the latter at US$1 billion, including debt. The bid was later denied.
Telco merger and acquisition transactions are seldom straightforward.
For telcos such as PacNet, which is a Designated Telecommunication Licensee in Singapore, any consolidation has to comply with the rules set out in the Code of Practice for Competition in the Provision of Telecommunication Services 2012. An application must be submitted to assist the industry regulator, Infocomm Development Authority of Singapore (IDA), in assessing the likely competitive effect of the consolidation.
IDA may request for more information and also impose certain terms and conditions in granting approval, including conditions designed to preserve competition and meet public interest objectives.