Indonesia approves merger of units of Qatar’s Ooredoo, CK Hutchison

JAKARTA, Jan 4 (Reuters) – Indonesia on Tuesday approved a $6 billion merger of telco units of Qatar’s Ooredoo and Hong Kong’s CK Hutchison  (0001.HK) and set a deadline of 2025 for the merged entity to ramp up its services, its communication minister said.

CK Hutchison Holdings and Ooredoo announced in September the deal, which will make the merged entity, Indosat Ooredoo Hutchison (ISAT.JK), the country’s second biggest telecoms company after state-backed Telkomsel. read more

The government has already given the merger a principal approval in November.

After the merger, Indosat must increase its tower sites by at least 11,400 by 2025 and expand its cellular services to cover a minimum of 7,660 more villages or districts by 2025, minister Johny G. Plate said in a news conference.

It must also improve its service quality by increasing download and upload throughput by at least 12.5% by 2025, he said.

Men look at the logo of Qatar Telecom Ooredoo, formerly Qatar Telecom Qtel, as they walk past the company’s head office in Doha March 16, 2013. REUTERS/Fadi Al-Assaad

Indosat has to also return 5 megahertz spectrum to the state within a year after Tuesday’s approval, he said.

“We hope the national telecoms industry will be … more productive and efficient to support the national digital transformation,” the minister said, adding that the merger would strengthen the capital structure of Indosat.

Vikram Sinha, a director with Indosat, told the conference the company is committed to meet the requirements set by the government.

Source: https://www.reuters.com/markets/europe/indonesia-approves-merger-units-qatars-ooredoo-ck-hutchison-2022-01-04/

World Economic Magazine

Recent Posts

McLane360 Signals a New Digital Chapter for Convenience Retail

Convenience retail is becoming an increasingly data-driven business, with operators balancing tight margins, shifting consumer…

6 days ago

Vali Cyber Targets a Critical Blind Spot With Multi-Factor Authentication for Hypervisors

As enterprises have moved more workloads into virtualised environments, the hypervisor has become a critical…

1 week ago

FIA and WRC promoter confirm final round of the 2026 FIA World Rally Championship

Rally Saudi Arabia will not form part of the 2026 FIA World Rally Championship due…

1 week ago

Teva Expands Its Outdoor Proposition With a Fall Collection Built for Trail and Everyday Adventure

Outdoor footwear is increasingly expected to do more than perform on a trail. Consumers move…

1 week ago

Go Brewing Bets on Performance Culture as Non-Alcoholic Beer Enters Its Next Phase

The non-alcoholic beverage market is beginning to move beyond the simple promise of drinking less.…

1 week ago

Nextpower Links Sustainability Targets to Supply Chain Accountability and Clean Energy Growth

For clean-energy technology companies, sustainability reporting is increasingly moving beyond a compliance exercise. Investors, customers…

1 week ago