This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
CK Hutchison, Oredoo Agree $6bn Merger of Indonesian Businesses
September 20, 2021
Hong Kong’s CK Hutchison Group has entered into a definitive agreement with Qatar’s Ooredoo Group on 16 September 2021 to combine their respective Indonesian telecommunication businesses, H3I (a subsidiary of CK Hutchinson) and Indosat (a subsidiary of Ooredoo) in a ~$6bn deal. This is the largest cross-border deal and the second largest merger in Indonesia.
After the merger, H3I will be dissolved and Indosat will continue as the surviving entity. H3I’s assets, liabilities and businesses will be transferred to the merged company, which will be named PT Indosat Ooredoo Hutchison Tbk. Post the merger, both parent companies will hold 50% of Ooredoo Asia, a wholly-owned holding company, which will be renamed to Ooredoo Hutchison Asia. Ooredoo Hutchison Asia will in turn own 65.64% of the merged company with the remaining owned by the Indonesian government, PT Tiga Telekomunikasi Indonesia and public shareholders. The combined business is expected to earn $3bn in annual revenue and lead to a cost savings of ~$400mn. Annual run rate pre-tax synergies of $300-400mn are expected to be realized over 3-5 years. The merger, expected by the end of the year is subject to the approval from the regulators and the shareholders.
CK Hutchison’s 2.875% 2022s and 4% perps were trading stable at 101.33 and 101.8 respectively. Ooredoo’s 3.25% 2023s and 2.625% 2031s were also stable at 103.63 and 103.18 respectively.
For the full story, click here
Go back to Latest bond Market News
Related Posts:
DP World Acquires Syncreon for $1.2bn
July 2, 2021
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.