TLK.NYSEPerusahaan Perseroan Persero Pt Telekomunikasi Indonesia Tbk

20-F: Telkom Indonesia Executes IndiHome Spin-Off into Telkomsel to Enhance Competitiveness

Sentiment:

Deed of Spin-off 1 April 2024 10:46 AM

📋All filings for Perusahaan Perseroan Persero Pt Telekomunikasi Indonesia Tbk

Telkom Indonesia completes the spin-off of its IndiHome business segment into Telkomsel to drive competitiveness and customer value through Fixed Mobile Convergence (FMC).

Summary

Telkom Indonesia has completed the spin-off of its IndiHome business segment into its subsidiary, Telkomsel.
This strategic move aims to enhance Telkomsel's competitiveness and create value for customers and shareholders.
The spin-off involves the transfer of IndiHome's assets, liabilities, and customer base to Telkomsel.
Telkomsel will compensate Telkom by issuing 33,300 new shares valued at IDR 33.3 trillion.
The restructuring supports Telkomsel's Fixed Mobile Convergence (FMC) strategy to expand its reach and better serve customers across Indonesia.
The spin-off is considered a business expansion for tax purposes under Minister of Finance Regulation Number 52/PMK.010/2017.

Sentiment

Score: 7

Explanation: The document outlines a strategic business decision with clear objectives and legal frameworks, suggesting a positive outlook for the companies involved.

Positives

The spin-off is expected to enhance Telkomsel's competitiveness and market position.
The move supports Telkomsel's FMC strategy, potentially leading to better customer service and expanded reach.
The transaction is structured to be tax-neutral, minimizing immediate tax implications.
Telkom receives new shares in Telkomsel, maintaining its stake in the growing mobile business.

Risks

The success of the spin-off depends on Telkomsel's ability to effectively integrate the IndiHome business.
There may be challenges in transferring all Transaction Objects completely or immediately to TELKOMSEL.
Potential disputes may arise after the Spin-off Effective Date related to the Transaction Object.

Future Outlook

The spin-off is expected to enhance Telkomsel's competitiveness and create value for customers and shareholders by expanding its reach and implementing the Fixed Mobile Convergence (FMC) strategy.

Management Comments

TELKOM plans to carry out corporate restructuring and business transformation for TELKOMSEL to remain competitive and create value for customers and shareholders by expanding its reach and implementing the Fixed Mobile Convergence (FMC) strategy to outreach to more customers in Indonesia.

Industry Context

The document reflects a trend in the telecommunications industry towards Fixed Mobile Convergence (FMC), where companies are integrating fixed and mobile services to offer seamless connectivity to customers.

Related Party Transactions

The document details a significant related party transaction between Telkom and Telkomsel, involving the spin-off of the IndiHome business segment.

Stakeholder Impact

Shareholders of Telkom will receive new shares in Telkomsel.
Employees related to the Transaction Object will have their employment relationship transferred to TELKOMSEL.
Customers of IndiHome will now be served by TELKOMSEL.

Next Steps

TELKOMSEL will issue new shares to TELKOM.
The parties will take all necessary actions to complete the transfer of the Transaction Object.
TELKOM and TELKOMSEL will handle and settle any legal cases that may arise after the Spin-off Effective Date related to the Transaction Object.

Key Dates

Date	Description
1995-05-25	Date of establishment of PT TELEKOMUNIKASI SELULAR articles of association.
1995-06-19	Date of Minister of Justice approval of PT TELEKOMUNIKASI SELULAR articles of association.
1995-11-24	Date of publication of PT TELEKOMUNIKASI SELULAR articles of association in the State Gazette.
1977-11-30	Date of establishment of the Indonesian National Arbitration Board (BANI).
2017	Minister of Finance Regulation Number 52/PMK.010/2017 on the Use of Book Value in Transfer and Acquisition of Assets in the context of Business Merger, Consolidation, Expansion or Acquisition.
2021	Minister of Finance Regulation Number 56/PMK.010/2021.
2023-04-06	Date of Spin-off Plan for the Spin-off and Disclosure of Information on the Spin-off of the IndiHome Business Segment.
2023-05-26	Date of Amendment and/or Supplement to the Disclosure of Information to the Public.
2023-05-30	Date of TELKOMs Shareholders Resolutions on the approval of the Spin-off.
2023-06-21	Date of TELKOMSELs Shareholders Resolutions.
2023-06-23	Date of deed regarding the change to the composition of the Board of Directors and Board of Commissioners.
2023-06-27	Date of the Deed of Spin-Off of IndiHome Business Segment.
2023-06-30	Data as of date for Transferred Assets.

Keywords

Telkomsel, Telkom, Spin-off, IndiHome, FMC, Convergence, Restructuring, Telecommunications, Indonesia

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