PT Telkom Indonesia plans to acquire up to 30% of Indonesian handset retailer and voucher distributor PT Tiphone Mobile Indonesia.
Telkom's PT PINS Indonesia subsidiary will buy a 10% stake in the company next month for around 500 billion rupiah ($41.7 million), Reutersreported. PINS will subsequently increase its stake to up to 30% for up to 800 billion rupiah.
According to the companies, the acquisition is aimed at strengthening Telkom's presence in the prepaid credit segment. PINS also offers products covering network security.
Tiphone reportedly plans to use the proceeds from the stake sale to acquire a handset distributor, as well as for working capital.
Telkom has been making moves to diversify its portfolio. In January, the company announced it had entered a joint venture with Australia's Telstra to provide network applications and services in the Indonesian market.