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||7 December 2009
State telecom giant scraps plan to acquire Indonesian tower
Indonesian state telecommunications company PT Telkom will not continue the acquisition of PT Solusindo Creative Pratama (Indonesian Tower) share, because it did not reach the stipulated agreement, national news agency Antara reported, quoting the company statement.
The acquisition cancellation of the Indonesian Tower`s 80 percent share will not disturb the company business, PT Telkom said in its press release made available to Antara here on Sunday.
On August 18, 2008, PT Telkom through its subsidiary, PT Dayamitra Telekomunikasi (Mitratel) had reached a conditional agreement with the Indonesian Tower to acquire 80 percent of the latter`s share.
But the transaction depends on the completion of certain conditions and adjustments which have been agreed upon, Vice President Investor Relations & Corporate Secretary Agus Murdiyanto said.
"As the certain condition was not fulfilled, the acquisition of majority ownership of the Indonesia Tower will not be continued," he said. According to Murdiyanto, the acquisition cancellation did not affect Mitratel and the company maintained its focus to develop the telecommunications tower business.
Indonesian Tower at the end of 2008 had 1,816 units of tower, or the largest tower providing company in the country.
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