ST Telemedia sells Indosat stake

Temasek Holdings-unit has announced it will sell its 41 percent stake in Indonesian operator, PT Indosat to Qatar Telecom for US$1.8 billion.
Written by Victoria Ho, Contributor

Singapore Technologies (ST) Telemedia will sell its 41 percent stake in Indonesian operator, PT Indosat, to Qatar Telecommunications (Qtel).

The Qatar telco will buy the stake from its joint-venture with ST Telemedia, Asia Mobile Holding, for US$1.8 billion.

In December last year, Indonesia's Commission for the Supervision of Business Competition (KPPU) charged investment firm, Temasek Holdings, with violation of the country's anti-monopoly laws by indirectly holding stakes in Indosat and PT Telkomsel.

Temasek fully owns ST Telemedia and also has substantial stakes in SingTel, which owns 35 per cent of another Indonesian telecom firm, Telkomsel.

In May, a district court upheld the watchdog's ruling that investment company Temasek Holdings, and its units, ST Telemedia and SingTel, had breached Indonesia's anti-monopoly laws.

Temasek was ordered to either give up its stakes in one of the two telcos or reduce its stakes by half in both units within a year.

This deal gives Qtel, which previously controlled 25 percent of Indosat, the majority shareholding of the company.

According to a Channel News Asia report, Temasek is appealing the lower court decision to the Supreme Court in Indonesia.

ST Telemedia owns 75 percent of Asia Mobile Holdings, and Qatar Telecom holds 25 percent.

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