SK Telecom Bids For Stake In Indonesian Mobile Operator

SEOUL -(Dow Jones)- SK Telecom Co. (SKM), South Korea's largest wireless operator, Thursday said it has submitted a bid to purchase a stake in Indonesian cellphone operator PT Excelcomindo Pratama.

SK Telecom spokesman Chai Young Hoon said the company was "one of several companies that submitted a bid."

He declined to provide further details.

SK Telecom has been looking to expand its wireless business overseas because the South Korean telecommunications industry is becoming increasingly competitive and operators are suffering from tepid revenue growth in an almost-saturated market.

More than seven out of 10 people in South Korea own a cellphone.

"We think that growth prospects in the wireless business in Indonesia are great given the country's low wireless penetration rate," said Chai.

An Excelcomindo representative couldn't immediately be reached for comment.

Excelcomindo has said it plans to sell a stake through an initial public offering later this year.

Excelcomindo is 60%-owned by Indonesian telecommunications firm PT Telekomindo Primabhakti, 23.1% by the U.S.' Verizon Communications (VZ), 12.7% by the Asian Infrastructure Fund, and 4.2% by Japan's Mitsui & Co. (MITSY).

Excelcomindo has about a 15% share of Indonesia's mobile phone market, with about 4.2 million subscribers as of end-September.

At 0325 GMT, shares of SK Telecom fell 4.1% to KRW189,500, underperforming the broader index's 1.4% decline.

-By Yun-Hee Kim, Dow Jones Newswires; 822-732-2165; yun-hee.kim@dowjones.com

-Edited by Sharon Vong

(END) Dow Jones Newswires"

Posted to the site on 8th December 2004