It was announced that PT. Indosat Tbk’s (“Indosat Ooredoo”) shareholders voted to approve the proposed merger between Indosat Ooredoo and PT. Hutchison 3 Indonesia (“H3I”) at an Extraordinary General Meeting of Shareholder (EGMS). The merged entity will remain PT Indosat Tbk.
The shareholders also approved the appointment of Vikram Sinha and Nicky Lee as CEO and CFO respectively of Indosat Ooredoo Hutchison. Current CEO Ahmad Al-Neama will be stepping down from his role and joining the Board of Commissioners from December 28, 2021.
The shareholders also voted in favor of the changes to the composition of the Board of Commissioner and Board of Directors of Indosat Ooredoo Hutchison as a result of the merger.
Upon closing H3I will merge into Indosat to create a single company called Indosat Ooredoo Hutchison that will remain listed on the IDX as PT Indosat Tbk.
Ooredoo currently has a 65.0% shareholding in Indosat Ooredoo through Ooredoo Asia, a wholly-owned holding company. Concurrent with the merger, CK Hutchison will transfer its new shares in Indosat Ooredoo Hutchison to Ooredoo Asia and will subscribe additional shares from Ooredoo Asia.
Upon closing of the transactions, Indosat Ooredoo Hutchison will be jointly controlled by Ooredoo Group and CK Hutchison and each party will own 50.0% of Ooredoo Asia, which will be renamed Ooredoo Hutchison Asia and will
retain a controlling 65.6% ownership stake in the merged entity.
The combined company will be the 2nd largest telecom operator in Indonesia with approximately 100 million customers.
The merger is still subject to conditions including relevant regulatory approvals.