TiPhone to speed up acquisition prep

JAKARTA. Mobile phone distributor PT TiPhone Mobile Indonesia Tbk is finalizing its plan to acquire PT Simpatindo Multimedia as part of efforts to counteract potential loss in revenue from the release of its XL product following the recent purchase of the TiPhone stake by state-owned telecommunications operator Telkom through PT PINS Indonesia.

Simpatindo, which was established in 2002, belongs to Sarindo Group and sells products under the names Telkomsel and Flexi.

“We are aiming to complete the acquisition of Simpatindo by this November since XL has requested TiPhone sell its stake or become the minority stakeholder in the subsidiary that manages its products,” TiPhone Mobile Indonesia president director Tan Lie Pin said Thursday, referring to XL as the product currently managed by PT Excel Utama Indonesia.

“Should we release XL, we might lose potential revenue of up to Rp 1 trillion [US$82.9 million] a year. For that reason, we have to be quick to look for a replacement, and in this case it is Simpatindo,” Pin said.

Currently, TiPhone has two subsidiaries: Telesindo Shop, which sells Telkomsel products and has 12 percent of the market share, and PT Excel Utama Indonesia, which handles XL Axiata products and has 9 percent of the market share.

Pin added that TiPhone had allocated Rp 500 billion for the corporate action.