TBIG-Telkom Stock Swap Could Lead to Monopoly: Analyst

TEMPO.CO, Jakarta – The acquisition of PT Telkom's (IDX: TLKM) tower subsidiary, PT Dayamitra Telekomunikasi (Mitratel), by Tower Bersama Infrastructure (IDX: TBIG), could lead to monopoly, analyst said.

Heru Sutadi, executive director of the Indonesia ICT Institute, said the government needs to look into this acquisition, "because Telkom is a state-owned company." He added that the sale of state assets should be evaluated by the Business Competition Supervisory Commission (KPPU).  

According to Heru, Telkom should have a clear vision about the businesses they run. Telkom recently sold Telkom Vision, and now they have sold Mitratel. Telkom, he said, should not have to resort to selling subsidiaries to seek additional funds.

Tower Bersama announced it has acquired Mitratel from Telkom through a stock swap mechanism. Telkom will swap 49 percent of its stake in Mitratel with 290 million new TBIG shares, which is worth some 5.7 percent TBIG's capital after the issuance of new shares.

TBIG CEO Hardi Wijaya Liong said Telkom also has the option to swap 51 percent of its remaining stake in Mitratel within a two-year period for an additional 472.5 million new TBIG shares. That way, Telkom's will have 13.7 percent in TBIG. 

GANGSAR PARIKESIT| AMOS SIMANUNGKALIT