Huawei is reportedly set to acquire a 9% stake in struggling Indonesian CDMA operator Bakrie Telecom as part of a debt repayment procedure.
Deal Street Asia has reported that Bakrie Telecom secured shareholder approval to issue convertible bonds worth 56% of shares in the company, that will then be divided among its 50 creditors.
The convertible bonds are worth around 7 trillion rupiah ($530.5 million), with a price per share of 200 rupiah, four times higher than the company’s current trading price.
As Bakrie's largest lender Huawei will receive bonds accounting for 9% of Bakrie Telecom shares. Indonesian independent telecom tower operators Protelindo and SUPR will receive stakes worth 7% and 6.8% respectively, according to the report.
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