PT Telekomunikasi Indonesia cancels Pacnet acquisition plans

PT Telekomunikasi Indonesia has reportedly abandoned plans to secure a $1 billion acquisition of Asian carrier Pacnet.

Newswire Reuters quotes PT Telekom CEO Arif Yahya as saying that the plans had been cancelled because acquiring Pacnet did not bring “added value” to the company.

The cancellation of the deal is likely to fuel speculation as to the level of involvement of former Pacnet CEO Bill Barney in the acquisition process.

On May 23 Barney unexpectedly left the company having represented Pacnet as a keynote speaker at the International Telecoms Week (ITW) event only a week before his departure. Barney had served the company and its predecessor Asia Netcom for over a decade.

PT Telkom submitted its bid to acquire Pacnet last month and was reportedly hoping to close the deal by the end of the second quarter.

Pacnet, which is owned by a group of private equity firms including Ashmore Investment Management and Clearwater Capital Partners, put itself up for sale last year after poor market conditions prevented its plans for an IPO.

The company has yet to announce a replacement for Barney, with CFO Brett Lay taking the position of interim CEO until one is found.