Indonesia's dominant cellular operator announced plans yesterday for two international bond issues and an important piece of MA, which will see strategic investor SingTel increase its stake in the company from 22% to 35%.
Somewhat bizarely officials said that JPMorgan has been mandated for a $100 million to $150 million five-year bond issue for the parent, PT Telkom, while UBS Warburg will lead a $100 million deal for cash cow, PT Telkomsel. Few knew that Telkomsel was planning a bond deal alongside Telkom and some wonder whether the two will cannibalise each other.
However, local experts say that it makes sense for the overall company to let Telkomsel raise its own funds...
