Qatar Telecom Still on Track to Buy Indonesian Stake

Qatar Telecom (Qtel) has refuted media reports that it was considering canceling its purchase of Indonesian mobile operator, Indosat - but did say that it was still waiting for further clarification on foreign ownership rules from the Indonesian government.

"The tender offer has not been called off and Qatar Telecom is awaiting government clarification on whether foreign ownership limitations should apply before continuing the tender offer process in accordance with Indonesian laws and regulations," the firm said in a statement.

Qtel recently confirmed that Indonesia's Supreme Court had ruled that the legal challenge before the Supreme Court to its ownership of its 40.8% stake in Indosat has now ended. There had been concerns that an earlier court ruling might have limited the firm to just a ten percent stake in the firm.

QTel paid US$1.8 billion to buy Asia Mobile Holding, which was a holding company for a stake in Indosat. Previously, QTel held one-quarter of Asia Mobile's stake, while three-quarters was owned by Singapore Technologies Telemedia. QTel now owns 40.8% stake in the firm.

Posted to the site on 13th October 2008