Indonesian Operator Changes Ownership

Telekom Malaysia, through its investment arm, TM International is buying control of the Indonesian operator, PT Excelcomindo Pratama ("XL") from the Rajawali Group the principal shareholders of PT Excelcomindo Pratama.

The transaction is structured as an initial acquisition of a 27.3% interest, together with transfer of majority management and board control to Telekom Malaysia. Telekom Malaysia will pay US$314 million with the transaction expected to close in January 2005. Telekom Malaysia intends to acquire additional shares to achieve a majority shareholding in 2005 subject to certain conditions being met. This transaction will complement XL's plan for an initial public offering during the first half of 2005.

Tan Sri Dato' Ir Radzi Mansor, Chairman of Telekom Malaysia said : "We are excited to acquire a substantial equity interest in XL and hope we can increase our stake further. This is clearly a major acquisition for us and is in line with our strategy to acquire mobile assets in low penetrated markets close to home. Indonesia is the largest economy in the ASEAN region and should have the largest number of subscribers in the region going forward."

The investment in XL complements Telekom Malaysia's existing regional mobile investments in Sri Lanka, Bangladesh and Cambodia as well as a potential investment in India under a teaming arrangement with Singapore Technologies Telemedia. The combined group will have total mobile subscribers of 11.3 million (proforma as of 30 September 2004)."

Posted to the site on 13th December 2004