PT Telkom in talks to buy into 2degrees

Dylan Bushell-Embling
01 Dec 2014
00:00

Indonesia's PT Telkom is reportedly in talks to acquire a 25-30% stake in New Zealand mobile operator 2degrees as part of its foreign expansion plans.

The Indonesian-language Investor Daily cited Telkom finance director Honesti Basyir as stating that the company is currently conducting due diligence on the proposed acquisition.

Assuming the deal checks out, it is expected to close by the end of the year, the report states.

Telkom was reported to be pursuing an acquisition of a substantial minority stake of a New Zealand operator in October.

The company declined to name its target at the time, but media reports speculated that it was incumbent operator Spark.

2degrees by contrast is New Zealand's newest operator, having launched services in 2009. The company has been pursuing an aggressive mobile strategy. In July, 2degrees launched its new LTE network and in September, the company expanded the network to a second city.

Word of Telkom's planned investment comes two months after the company agreed to enter a joint venture with Australia's Telstra that will offer network applications and services in the Indonesian market.

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