Qatar’s telecoms company Ooredoo and Hong Kong’s CK Hutchison Holdings Ltd has completed the $6 billion merger of their Indonesian telecom businesses after securing all shareholder and regulatory approvals.
The deal will make the merged entity, Indosat Ooredoo Hutchison, the country’s second-biggest telecoms company after state-backed Telkomsel. The government has already given the merger principal approval in November.
"The new second-largest mobile telecoms company in the country, with an estimated annual revenue of approximately US$3 billion, will be able to compete and create additional value for all shareholders, customers, and for Indonesia," said a press release.
Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison with a 65.6% shareholding. It will remain listed on the Indonesian Stock Exchange under the ticker ORDS, with the Government of Indonesia retaining a 9.6% shareholding, PT Tiga Telekomunikasi Indonesia holding a 10.8% shareholding, and other public shareholders holding approximately 14.0%.
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, Indonesian communication minister Johny G. Plate said.
Vikram Sinha, Chief Operating Officer (COO) of Indosat Ooredoo since 2019, will lead Indosat Ooredoo Hutchison as its new Chief Executive Officer (CEO). Nicky Lee has been appointed as Chief Financial Officer (CFO) of Indosat Ooredoo Hutchison. Ahmad Abdulaziz Al-Neama and Eyas Assaf have joined the Ooredoo Group.