State-owned telecommunication company PT Telekomunikasi Indonesia (TLKM) strengthened its ICT solution business with the acquisition of PT Bosnet Distribution Indonesia by its subsidiary PT Sigma Cipta Caraka. TLKM expects PT Bosnet, engaged in ICT solution for fast moving consumer goods (FMCG), to strengthen its e-logistic and e-commerce ecosystem.
The acquisition is interesting because TLKM has 49% shareholding in PT Integrasi Logistik Cipta Solusi, which is also engaged in ICT solution business. TLKM’s e-payment business, meanwhile, reported revenues of Rp602 billion in the first nine months of 2017, skyrocketed from Rp177 billion only in the corresponding period last year.
TELCO TOWER: In the meantime, some investors have reportedly pulled out from acquisition of PT Komet Nusantara, a telecommunication tower provider controlled by PT Nusantara Infrastruktur Tbk (META). PT Komet, where META has 79.64% shares, had total assets of Rp2.46 trillion by September 30, 2017. Telecommucation segment contributed sales revenue of Rp216.8 billion in the first nine months of 2017, increased by 24% from the same period last year.
Interesting to see whether META will continue selling PT Komet after Salim Group controlling substantial shares in META through MPIC. Some continue to speculate on possible consolidation with other telco tower companies.
As reported earlier, Protelindo pulled out from acquisition of majority shareholding of PT Solusi Tunas Pratama (SUPR) Tbk, the third largest telco tower operator behind Protelindo and Tower Bersama Infrastructure (TBIG).
MULTISTRADA (MASA): The tire producer has signed preliminary agreement with PT Penta Artha Impressi (PAI), Mr Yulian Kusuma Kwee, and Mr Otniel I.S. Korompis for the acquisition of PAI shares. PAI operates automotive service outlets under the Ban Oli Service (BOS) in 19 locations in greater Jakarta and Yogyakarta area.
MASA has been struggling in the past few years. While sales revenues grew significantly to US$208.4 million in the first nine months of 2017, net loss doubled to US$5.06 million in the period, mostly due to higher selling and distribution expenses plus increasing cost of finance.
CHITOSE: Chitose International (CINT), meanwhile, has entered into a joint venture with Japanese company C-Eng Co Ltd with paid-up capital of Rp2.5 billion. CINT will have 70% shares in the JV, while C-Eng 30%. The JV is expected to generate sales revenue of Rp7.8 billion in its first year of commercial operation with estimated annual growth of 10%.
C-Eng is famous for its C-CORE products for mattress and automotive industries. Chitose, meanwhile, is engaged in furniture business with sales revenue of Rp264.4 billion and net profit of Rp20 billion in the first nine months of 2017.
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