Telkom Indonesia abandons acquisition of PE-owned TeleGuam

According to a statement, Telkom and Advantage mutually decided to terminate a regulatory approvals process with US authorities. Telkom did not state the reason for termination. Advantage will continue to hold its equity investment in the company.

Telkom agreed to acquire the company in June last year as part of an effort to continue developing the South East Asia-United States submarine cable system, which is expected to meet growing demand for bandwidth between Southeast Asia and North America. The deal was believed to be worth about $300 million.

TeleGuam operates across broadband, pay-TV, wireless and fixed telephone services with a comprehensive infrastructure network. The company claims to have invested $70 million in this network and related back office systems during the past seven years. Under Advantage ownership, it has expanded its 4G capacity and negotiated low roaming rate agreements with overseas operators including Japan's SoftBank.

Advantage bought the company in 2011 from US private equity firm Shamrock Capital Advisors, which had in turn acquired the business from the Guam government through a 2005 privatization. Advantage made the investment via its JPY215 billion ($2 billion) fourth buyout fund that closed in 2007.

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• Topics
• Southeast Asia
• Consumer
• Support services
• Trade sale
• Indonesia
• Japan
• Advantage Partners
• TMT