Telekom CEO Ron Sommer: Consistent focus on European home market and the US - Proceeds of EUR 361 million for 25% stake to go towards debt reduction Deutsche Telekom is to sell its 25% stake in the Indonesian mobile communications operator PT Satelindo to the state-owned company PT Indosat. This was agreed by the two companies with the signing of a basic agreement in Jakarta on Wednesday. Indosat already holds 75% of the shares in PT Satelindo and is looking to take over PT Satelindo in its entirety as part of its own privatisation programme. An aggregate price of EUR 361 million in cash was agreed. The sale of the shares is to be completed by June of this year, subject to approval by the relevant bodies.
Deutsche Telekom CEO Dr. Ron Sommer said in Bonn: "This sale of our shareholding in Indonesia represents the consistent pursuit of Deutsche Telekom's strategy of achieving leading market positions for the companies of the Group in our core markets of Europe and North America through majority shareholdings and thus generating synergies for the whole Group".
The Member of Deutsche Telekom's Board of Management responsible for the International Division, Jeffrey A. Hedberg, said of the result of the negotiations: "The privatisation plans of our partner PT Indosat gave us the opportunity to sell our shareholding in Indonesia at an attractive valuation. This action was taken after very careful examination of the local situation and has no direct impact on our other shareholdings in the region". The proceeds of this sale will be used entirely for Deutsche Telekom's debt reduction programme.
Goldman Sachs and JPMorgan advised Deutsche Telekom on the transaction. About Deutsche Telekom:
Deutsche Telekom is Europe's largest communications company and one of the largest communications carriers worldwide based on 2001 revenues of 48.3 billion euros. The company is active in four key growth segments of the global telecommunications market: mobile communications, network access services, consumer Internet services and integrated IT and telecommunications solutions. Through T-Mobile , Deutsche Telekom's mobile telephony subsidiary, and through other majority and minority shareholdings, Deutsche Telekom today serves approximately 67 million mobile telephony customers worldwide. In 2001, Deutsche Telekom completed the acquisition of U.S. mobile telephony companies VoiceStream Wireless and Powertel Inc., forming the first transatlantic wireless communications operator utilizing the GSM digital wireless technology standard. Deutsche Telekom offers its customers a complete range of fixed-line voice telephony products and services through almost 57 million access lines. The company is a leading provider of high-speed digital access lines, with about 2.4 million new asymmetric digital subscriber line (T-DSL) services currently sold and about 20.4 million channels using the information transfer standard ISDN (Integrated Services Digital Network) as of year end 2001. T-Online is one of Europe's largest Internet service providers, with approximately 10.7 million subscribers. T-Systems is Europe's second-largest provider of comprehensive IT and telecommunication solution and services to business customers in more than 20 countries. For more information about Deutsche Telekom, visit www.telekom.de/international.
About Indosat: Indosat is a full telecommunication network and service provider in Indonesia. Its shares are listed on the Jakarta and Surabaya Stock Exchanges (JSX : ISAT) and its American Depository Shares are listed on the New York Stock Exchange (NYSE : IIT)
About Satelindo: Satelindo is a private company providing cellular, international telephone and satellite services in Indonesia. The company is also the second largest GSM 900 mobile operator in Indonesia serving an estimated 1.8 million subscribers by year end 2001.