CK Hutchison, Ooredoo extend merger talks again
Hong Kong-based CK Hutchison and Qatari telecoms company Ooredoo have again extended talks for the proposed merger of their Indonesian subsidiaries.
CK Hutchison on Monday (16 August) said both companies had agreed to extend the deadline to 23 September (2021), which will be the final extension.
It claimed that both sides required additional time to finalise definitive documents. They will then seek their approvals from the board.
The 2 companies earlier in April (2021) extended the deadline to the end of June (2021).
CK and Ooredoo in December (2020) signed a non-legally binding memorandum of understanding for the proposed merger – Hutchison 3 Indonesia from CK and Indosat from Ooredoo.
The deal will reportedly involve a cash-and-stock offer. Both companies will become significant shareholders in the combined entity.
Indosat is one of the largest telecoms service providers in Indonesia, which owns up to 16% of the market share in the country's telecoms sector. Ooredoo holds a 65% stake in it.
CK owns a 66% interest in Hutchison 3 Indonesia through its subsidiary Hutchison Asia Telecom. Indonesia-based Tiga Telekomunikasi holds the remaining 33% stake through an acquisition totalling up to Rp47 trillion ($3.25m).
Indosat in March (2021) completed the divestment of 4,200 cell towers to American digital infrastructure company Digital Colony for $750 million.
CK in 2019 was reportedly in talks with Malaysia-based Axiata Group for a potential merger of their telecommunications businesses. The companies later aborted the deal.
A version of this story first appeared in IJGlobal