Indosat (Indosat Ooredoo) and Hutchison 3 Indonesia (H3I) last week announced the completion of the proposed merger of their respective telecommunications businesses in Indonesia.
The newly merged company will do business as Indosat Ooredoo Hutchison, effective 4 January 2022. The completed merger combines two highly complementary businesses to create a new world-class digital telecoms and internet company in Indonesia. 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.
Indosat Ooredoo Hutchison has the enhanced scale, financial strength and capabilities needed to accelerate Indonesia’s economic growth and transformation into a digital society. The merger realises significant operational synergies that will deliver cost efficiencies and facilitate deeper innovation and network enhancements, including the rollout of 5G in Indonesia.
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%.
Wanda Mkhize, Executive Smart Home & Content at Telkom
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 Ooredoo Group.
Wanda Mkhize, Executive Smart Home & Content at Telkom
Aziz Aluthman Fakhroo, Managing Director of Ooredoo Group, said: “We are pleased to combine two of Indonesia’s leading telecoms brands to create a stronger number two player in Indonesia, backed by two highly committed partners in Ooredoo Group and CK Hutchison. Indosat Ooredoo Hutchison is well placed to achieve exciting long-term growth under the leadership of Vikram and his experienced management team with a proven track record in Indonesia.
