JAKARTA (TheInsiderStories) – PT Telkom Indonesia (Persero) Tbk (IDX:TLKM) through its subsidiary PT Telekomunikasi Indonesia International (Telin) has agreed to acquire 70 per cent shares of TS Global Network Sdn Bhd (TSGN), Malaysia’s dominant provider of satellite communications services.
Both companies, however, declined to disclose the value of the transactions.
The transfer of majority ownership of TS Global Network to Telin was marked by the signing of a conditional sale & purchase agreement executed by President Director Telin Faizal R. Djoemadi, CEO of TS Global Network Kent Ho, and the company’s shareholders, witnessed by Telkom’s Wholesale & International Service Director Abdus Somad Arief and Chairman of TS Global Network Datuk Hod Parman, in Cyberjaya, Malaysia, Friday (24/11).
TS Global Network is the largest VSAT service provider in Malaysia, with corporate customers from various industries, such as plantations, mining, government and banking, as well as TS Global Network having affiliated companies in Brunei and Myanmar.
President Director Telin Faizal R. Djoemadi said that in a satellite business which has no national borders Telin needs an experienced and existing partner in the regional market.
Therefore, with TS Global Network, the opportunity to expand the communications satellite market will be wide open, both in Malaysia and other regional regions.
“‘The acquisition of TSGN is also in line with Telin’s vision to become a Global Digital Hub. This corporate action is also expected to provide added value for Telin in terms of access to regional markets, especially Malaysia, Brunei and Myanmar,” Djoemadi said after signing.
On the same occasion, Telkom Director of Wholesale & International Service, Abdus Somad Arief, affirmed that synergy with TS Global Network is a strategic step for the development of satellite markets in the Asia Pacific region.
“This synergy will further open up opportunities for Telkom Group to realize the goal of becoming a major player in the satellite business, in line with the company’s strategic objectives to become a top 3 satellite service providers in Asia,” said Arief.
Recently, Telkom with Loft Orbital, a San Francisco-based tech startup that leases space on satellites, raised $3.2 million in a seed financing round led by Uncork Capital via its corporate venture arm, MDI Ventures.
Telkom posted a 21.6 per cent jump in net profit in the nine months to September this year, despite the spectacular and well-publicized lost satellite incident in August.
Net profit came in at Rp17.92 trillion ($1.32 billion) for the January-September period, compared with Rp14.73 trillion a year earlier.
Data Segment, Internet & IT Service became the largest revenue contributor, amounting to Rp42.45 trillion. Meanwhile, Cellular Voice and Short Message Service revenues amounted to Rp38.68 trillion and Fixed Line Voice segment totaled Rp5.42 trillion.
So far this year, Telkom has doled out Rp20.3 trillion in capital expenditures to build Base Transceiver Stations to support its mobile business and to complete the construction of backbone access and infrastructure, including satellite launches and the development of an international access Cable Communication System.
Written by Elisa Valenta, email : firstname.lastname@example.org