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Telecommunication |
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| Hutchison Telecom to Acquire Cyber Access Indonesia | | By Endonesia |
| Wednesday, March 09, 2005 03:48:45 |
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| Hutchison Telecom announced today that one of its wholly-owned subsidiaries has entered into a conditional agreement to acquire a 60% equity stake in PT Cyber Access Communications (''Cyber Access'') in Indonesia. |
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Hongkong, PRNewswire -- Hutchison Telecom announced today that one of its wholly-owned subsidiaries has entered into a conditional agreement to acquire a 60% equity stake in PT Cyber Access Communications (''Cyber Access'') in Indonesia.
Under the agreement Hutchison Telecom will acquire a 60% stake in Cyber Access for a cash consideration of US$120 million.
After completion of the acquisition, Hutchison Telecom will have management control of Cyber Access, with Charoen Pokphand Group Indonesia (''CP Group Indonesia'') retaining a 40% stake. Both parties have made a major commitment with an initial investment of US$300 million, which Hutchison Telecom and CP Group Indonesia will fund pro-rata.
Dennis Lui, CEO of Hutchison Telecom, said: ''We are very excited at the prospect of expanding our footprint into Indonesia, a strategic growth market and leveraging on our experience as a global mobile operator. Together with CP Group, a strong strategic partner in Indonesia, we are well positioned to establish a leadership position in a telecommunications market with tremendous growth potential.''
Benjamin Jiaravanon, Executive Chairman of CP Group Indonesia, said: ''This is a key milestone in the development of Cyber Access' mobile operations. Given its still low penetration rates, Indonesia is one of the world's top mobile growth markets. With the experienced management team and advanced technology from Hutchison Telecom, we look forward to breaking new ground within the Indonesian mobile communications industry.''
The completion of the sale is subject to certain conditions, including the approval of the Capital Investment Coordinating Board (BKPM) of Indonesia to the transfer of the 60% stake under the agreement. Subject to all the conditions being satisfied, completion of the Company's acquisition of the 60% stake is scheduled to occur in early May 2005.
Cyber Access is one of only two mobile operators in Indonesia that holds a combined nation-wide 2G and 3G mobile telecommunications licence in Indonesia, a country with a low 13.6% penetration at the end of 2004 and strong subscriber growth of more than 40% for last year.
Hutchison Telecommunications International Limited (''Hutchison Telecom''), http://www.htil.com , is a leading global provider of telecommunications services. The Company's business is currently in nine markets around the world.
Hutchison Telecom currently operates mobile and fixed telecom services in Hong Kong and mobile services also in Macau, India, Israel, Thailand, Paraguay, Sri Lanka and Ghana. It expects to launch mobile services in Vietnam later this year.
Hutchison Telecom was the first provider of 3G mobile services in Hong Kong, where it also provides broadband fixed-line services. Hutchison Telecom operates common brands across its business including ''Hutch,'' ''3'' and ''Orange.'' Hutchison Telecom is a listed company whose American depositary shares are quoted on the New York Stock Exchange under the symbol ''HTX'' and shares are listed on the Hong Kong Stock Exchange under the stock code ''2332.''
A subsidiary of the Hong Kong-based Hutchison Whampoa Group, Hutchison Telecom is dedicated to providing superior telecommunications services in markets with high growth potential.
PT Cyber Access Communications (''Cyber Access'') was awarded the first nationwide wireless license to operate mobile phone services based on a combined 2G and 3G wireless network spectrum through the first open and competitive licensing process in Indonesia.
A member of the Charoen Pokphand Group Indonesia, Cyber Access was established to pursue business opportunities in telecommunications services in line with the liberalization of the telecom sector in Indonesia.
Charoen Pokphand Group Indonesia is one of the leading industrial groups in the Indonesia with over 30 years of operational experience in the country, focusing on businesses such as Agri-business, Foods and Telecommunication. The group has a nationwide operation with more than 20,000 employees. ©
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