‘Telkom exploring deals for $1-B data center unit’

State-owned phone carrier PT Telkom Indonesia is considering introducing investors to its data center business amid increasing interest for digital infrastructure assets, according to people familiar with the matter.

The Jakarta-listed telecom giant has held initial talks with prospective investors and could seek a valuation of more than $1 billion for the operation in a deal, the people said, asking not to be identified because the matter is private. Options under consideration include selling a minority stake in the data center unit, the people said. The company said last year it was planning an initial public offering for the business in 2023.

Discussions are at an early stage and might not lead to any transactions, the people said. Telkom hasn’t decided whether it will introduce investors to, or hold an IPO for, the data center operation, President Director Ririek Adriansyah said in response to a Bloomberg News query, adding that the business could be valued at about 25 times Ebitda.

“We will see how our data center consolidation and development progresses,” he said in a text message. “We will also need to look at the macro conditions before deciding on the right scenario.”

Global investment funds are keen for digital infrastructure assets in Southeast Asia, which has seen rising demand for e-commerce and financial technology services. Beyond Indonesia, the Philippines has also turned into a hot spot for deals in assets such as mobile phone towers and data centers.

Telkom, which has a market value of about $28 billion, has been looking into reorganizing and monetizing its wide-ranging assets from mobile and broadband, to satellites and digital content.

The company is considering a merger of its broadband and wireless businesses, a move that would create an entity valued at more than $30 billion, Bloomberg News has reported. Banks including Goldman Sachs Group Inc. and PT Bank Mandiri have been tapped to work on the deal, people familiar with the matter have said.

Telkom’s infrastructure services unit, known as Mitratel, raised about 18.8 trillion rupiah ($1.2 billion) in a Jakarta initial public offering in November last year. Bloomberg News

Total
0
Shares

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Article

Sony bumps up profit forecast

Next Article

Brazil’s brash President Bolsonaro mum after election loss

Related Posts

Read more

Eternal Gardens seals agreement with TWA, Inc.

Philippine memorial industry leader Eternal Gardens has entered into an agreement with TWA, Inc., owner and operator of the Flying V chain of gasoline retail stations, for the latter to lease the memorial park developer’s 1000 sq m property on Macapagal Road, Barangay Bulua, Cagayan de Oro City.

Read more

CIC earnings doubled in Q4 2022

Concepcion Industrial Corp. (CIC), known for its stable brands of refrigerators and air conditioners, said its earnings doubled to P60 million in the fourth quarter of 2022.

Total
0
Share