Qtel to pay original price for PT Indosat shares

Raising its stake to 65% from 40.8% will cost Qatari operator $802mn.

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By  Arabian Business staff writer Published  November 29, 2008

Qatar Telecom (Qtel) has agreed to pay its original offer price for a controlling stake in Indonesia’s second-largest telephone company, PT Indosat, newswire Bloomberg reported on Saturday.

The Qatari company will have to spend 9.71 trillion rupiah ($802 million) to raise its stake, Bloomberg said.

Qatar Telecom will offer 7,388 rupiah a share to increase its Indosat stake, Ahmed Fuad Rahmany, chairman of the Indonesian regulator, said.
The government on Oct. 27 allowed the Qatari company, which owns 40.8 percent of Indosat, to raise its holding to 65 percent.

The following day Qatar Telecom said it would pay 6,416 rupiah each for the additional shares after heavy falls in global stock markets.

Shares of Jakarta-based Indosat surged 20 percent, its daily limit, after Rahmany’s comments on the higher offer price, the biggest jump since October 1998. The offer price was 74 percent more than the stock’s midday close of 4,250 rupiah.

Qatar Telecom in June paid $1.8 billion, or 7,388 rupiah a share, to buy a 40.8 percent stake in Indosat from its venture with Singapore’s Temasek Holdings Pte unit. The company said on June 26 it would pay 7,388 rupiah per share to increase its stake.

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