Telkom officials say due dilligence done for CamGSM stake

[PHNOM PENH POST]

AN Indonesian mobile operator has completed its due diligence process for Cambodian mobile provider CamGSM, and is awaiting the results of an internal review on the stake, according to a translated report from Indonesia’s Kontan newspaper.

“As we know, penetration in Indonesia is very high and [Telkom] needs to find a new niche,” Eddy Kunia, Vice President of Public and Marketing Communication at PT Telekomunikasi Indonesia Tbk, or Telkom Indonesia, said in the report from Monday.

He declined to set a date for the internal review process to be completed, but said the plan was for Telkom to be majority shareholder of CamGSM.

CamGSM operates its mobile service under the Cellcard brand in Cambodia.

Cambodian conglomerate the Royal Group completed its purchase of CamGSM in November 2009 from former partner Luxembourg-based Millicom International SA, in a deal that won industry magazine Telecomfinance’s 2009 “Asia Deal of the Year” award.

Royal Group is currently financed through a syndicated loan, with Bank of China as mandated lead arranger.

Eddy Kunia and other Telkom officials did not return a request for comment yesterday. CamGSM officials could not be reached yesterday.