AdMedika ready to launch IPO by 2016 : Telkom finance director

[Visual from Telkom’s website]

JAKARTA (TheInsiderStories) - The largest telecom operator PT Telkom Indonesia (IDX: TLKM) plans to sell the shares of its health information exchange services unit PT Administrasi Medika (AdMedika) via initial public offering (IPO) as earlier as 2016, the proceeds of which will be used for expansion.

The state-own firm is also exploring other units for possible IPO (initial public offering) in the future.

Finance Director Heri Sunardi told The InsiderStories, the IPO of its units is part of Telkom strategic plan to finance the group business expansion. Telkom plans to become the largest telecom operator in the region through organic and non-organical plans.

“The IPO of our units is one of our plans in 2016. There are several units that are ready to go for IPO such as AdMedika,” Heri said.

Telkom through its subsidiary PT Multimedia Nusantara (Telkom Metra) acquired 75% shares of AdMedika in 2010 to strengthen its information and services business portfolio, which is part of long-term program called Telkom TIMES (Telecommunication, information, media and edutainment services).

Telkom also plans to list its tower operator PT Dayamitra Telekomunikasi (Mitratel) through a backdoor listing through PT Tower Bersama share-swap deal as part of moves to increase the value of Mitratel. Through the deals, Telkom would have an option to become a simple majority in Tower Bersama Infrastructure (IDX: TBIG) by acquiring up to 50%.

Other unit which is being assessed for listing on the Indonesian Stock Exchange are West Java-based PT Telkom Sigma Cipta Caraka (TelkomSigma), a leading integrated IT solutions firm in Indonesia, establishment in 1987.

Telkomsigma offers comprehensive information technology services, comprising consulting services, IT management, software development, and integrated data center operations in the banking, financial, telecommunications, manufacturing, distribution and other sector.

Telkom now in the process to acquire U.S cellular operator company Guam Telecom with estimated value of $300 million. The deal is expected to be will closed by the end of 2015.

Heri said beside listing their units on the Indonesia Stock Exchange, Telkom also aims to sell the rupiah bond Rp5 trillion in the second half of 2015 or earlier of 2016. Telkom is preparing capital expenditure of Rp 20 trillion in 2015 to finance their group business organically. (*)