Ooredoo and and CK Hutchison announced that they have completed the merger of their Indonesian mobile businesses, Indosat Ooredoo and 3 Indonesia, following all necessary regulatory and shareholder approvals. This creates the second-largest mobile operator in the country, with estimated annual revenue of USD 3 billion.
Indosat Ooredoo Hutchison has the enhanced scale, financial strength and capabilities needed to accelerate Indonesia’s economic growth and transformation into a digital society, the companies said in a statement. They expect significant operational synergies from the merger, resulting in cost savings that can be re-invested in the network and the roll-out of 5G.
Vikram Sinha, COO of Indosat Ooredoo since 2019, will lead Indosat Ooredoo Hutchison as its new CEO, while Hutchison's Nicky Lee has been appointed CFO. The former Indosat execs Ahmad Abdulaziz Al-Neama and Eyas Assaf have joined Ooredoo Group.
Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison with a 65.6 percent shareholding. The government of Indonesia holds a 9.6 percent stake and Tiga Telekomunikasi Indonesia 10.8 percent, and the remaining shares will be traded on the Indonesian Stock Exchange.
The company said customers should see no change in service. To celebrate the merger, it's giving all customers a free calls bundle this month.
Merger commitments
As part of government approval of the merger, the company agreed to expand its network coverage, Reuters report. The group committed to add at least 11,400 tower sites by 2025 and bring mobile service to a minimum 7,660 more villages or districts by the same date, communication minister Johnny G. Plate said at a news conference.
Download and upload speeds are also expected to increase, by at least 12.5 percent by 2025. In addition, Indosat must return a 5 MHz block of spectrum to the state within the next year.
