Ooredoo Q.P.S.C. (Ooredoo) and CK Hutchison Holdings Limited (CK Hutchison) today announced the completion of the proposed merger of their respective telecommunications businesses in Indonesia: PT Indosat Tbk (Indosat Ooredoo) and PT Hutchison 3 Indonesia (H3I).
After receiving all required shareholder and regulatory approvals. The newly merged company will do business as PT Indosat Ooredoo Hutchison Tbk (Indosat Ooredoo Hutchison -IOH-)effective 4 January 2022.
As the result of the combination of two highly complementary businesses IOH (the new merged company) becomes the second largest mobile telecoms company in the country, with an estimated annual revenue of approximately $3Bn.
Vikram Sinha, from COO Indosat Ooredoo to CEO of IOH
Vikram Sinha, Chief Operating Officer (COO) of Indosat Ooredoo since 2019, will lead Indosat Ooredoo Hutchison as its new Chief Executive Officer (CEO). Nicky Lee has been appointed as Chief Financial Officer (CFO) of Indosat Ooredoo Hutchison. Ahmad Abdulaziz Al-Neama and Eyas Assaf have joined Ooredoo Group.
Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison that hold the 65.6% of the shares of the company and will remain listed on the Indonesian Stock Exchange under the ticker ORDS, with the Government of Indonesia retaining a 9.6% of total shares, PT Tiga Telekomunikasi Indonesia holding a 10.8%, and other public shareholders holding approximately 14.0%.
About Indosat Ooredo and CK Hutshinson
Ooredoo is an international communications company operating across the Middle East, North Africa and Southeast Asia. Serving consumers and businesses in 10 countries, Ooredoo delivers the leading data experience through a broad range of content and services via its advanced, data-centric mobile and fixed networks.
Ooredoo generated revenues of QAR 29Bn as of 31 December 2020. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange.
Listed on The Stock Exchange of Hong Kong Limited, CK Hutchison Holdings Limited (CK Hutchison) is a renowned multinational conglomerate committed to innovation and technology with businesses spanning the globe. With operations in about 50 countries/markets and 300,000 employees worldwide, CK Hutchison has four core businesses – ports and related services, retail, infrastructure and telecommunications.
CK Hutchison reported turnover of approximately HKD404Bn (US$52Bn) for the year ended 31 December 2020.
A win win operation
Aziz Aluthman Fakhroo, Managing Director of Ooredoo Group, said: “We are pleased to combine two of Indonesia’s leading telecoms brands to create a stronger number two player in Indonesia, backed by two highly committed partners in Ooredoo Group and CK Hutchison. Indosat Ooredoo Hutchison is well placed to achieve exciting long-term growth under the leadership of Vikram and his experienced management team with a proven track record in Indonesia.
“The merger’s timely completion reflects the recognition of the significant value and benefits that the company will deliver for all stakeholders including Indosat Ooredoo and Ooredoo Group shareholders, customers, employees, partners and Indonesia. This landmark transaction is closely aligned with the progression of Ooredoo Group’s accelerated growth strategy.
“I look forward to a long, prosperous partnership with CK Hutchison and would again like to extend my sincere gratitude to our customers, employees, shareholders, partners, and the Government of Indonesia, who created an environment that enabled the merger to become a reality.”
Canning Fok, Group Co-Managing Director of CK Hutchison Holdings Limited, said: “I have every confidence that this merger will be highly accretive for all stakeholders involved, including customers, shareholders, and for Indonesia. Indosat Ooredoo Hutchison is now a stronger, world-class digital telecoms and internet company with critical mass, well positioned to build an even more powerful network that can benefit Indonesia’s development and customers, who will receive improved services and an even broader product offering that would not have otherwise been possible.