Ooredoo Group, CK Hutchison create Indonesia’s second largest mobile telecoms company
By Digital News Asia January 6, 2022
- Newly merged company will do business as, Indosat Ooredoo Hutchison effective 4 Jan
- Merger combines two complementary business to create 2nd largest telco in Indonesia
Ooredoo Q.P.S.C. and CK Hutchison Holdings Limited have announced the completion of the proposed merger of their respective telecommunications businesses in Indonesia, PT Indosat Tbk (Indosat Ooredoo) and PT Hutchison 3 Indonesia (H3I), after receiving all required shareholder and regulatory approvals. The newly merged company will do business as PT Indosat Ooredoo Hutchison Tbk (Indosat Ooredoo Hutchison), effective 4 January 2022.
In a joint statement, the companies indicated that the completed merger combines two highly complementary businesses to create a new world-class digital telecoms and internet company in Indonesia. The new second largest mobile telecoms company in the country, with an estimated annual revenue of approximately US$3 billion (RM12.5 billion), will be able to compete and create additional value for all shareholders, customers and for Indonesia.
Indosat Ooredoo Hutchison has the enhanced scale, financial strength and capabilities needed to accelerate Indonesia’s economic growth and transformation into a digital society. The merger realises significant operational synergies that will deliver cost efficiencies and facilitate deeper innovation and network enhancements, including the rollout of 5G in Indonesia.
Vikram Sinha, chief operating officer of Indosat Ooredoo since 2019, will lead Indosat Ooredoo Hutchison as its new chief executive officer. Nicky Lee has been appointed as chief financial officer of Indosat Ooredoo Hutchison whilst Ahmad Abdulaziz Al-Neama and Eyas Assaf have joined Ooredoo Group.
Aziz Aluthman Fakhroo (pic, left), managing director of Ooredoo Group, said the combining of two of Indonesia’s leading telecoms brands will create a stronger number two player in Indonesia, backed by two highly committed partners in Qatar-based Ooredoo Group and Hong Kong-based CK Hutchison.
“Indosat Ooredoo Hutchison is well placed to achieve long-term growth under the leadership of Vikram and his experienced management team with a proven track record in Indonesia.
“The merger’s timely completion reflects the recognition of the significant value and benefits that the company will deliver for all stakeholders including Indosat Ooredoo and Ooredoo Group shareholders, customers, employees, partners and Indonesia. This landmark transaction is closely aligned with the progression of Ooredoo Group’s accelerated growth strategy,” Aziz added.
Canning Fok (pic, right), group co-managing director of CK Hutchison Holdings said that this merger will be highly accretive for all stakeholders involved, including customers, shareholders, and for Indonesia.
“Indosat Ooredoo Hutchison is now a stronger, world-class digital telecoms and internet company with critical mass, well positioned to build an even more powerful network that can benefit Indonesia’s development and customers, who will receive improved services and an even broader product offering that would not have otherwise been possible.
“Now the number two operator in Indonesia, the merged company can harness its combined resources to drive the further rollout of its network to enhance quality and speed and invest in 5G technology,” Fok added.
Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison with a 65.6% shareholding. It will remain listed on the Indonesian Stock Exchange under the ticker ORDS, with the Government of Indonesia retaining a 9.6% shareholding, PT Tiga Telekomunikasi Indonesia holding a 10.8% shareholding, and other public shareholders holding approximately 14.0%.
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