JAKARTA, June 24 (Reuters) - A unit of Indonesia’s largest telecommunication company, PT Telekomunikasi Indonesia Tbk (Telkom), plans to acquire an up to 30 percent stake in PT Tiphone Mobile Indonesia Tbk to strengthen pre-paid phone credit sales.
Tiphone will sell 10 percent in new shares at 812 rupiah per share next month to Telkom’s PT PINS Indonesia, Samuel Kurniawan, Tiphone corporate secretary, told reporters on Tuesday.
The sale will raise about 500 billion rupiah ($50.89 million), he said. Tiphone is a handset retailer and vouchers distributor.
Kurniawan also said PINS Indonesia is planning to later increase its ownership at Tiphone to 30 percent for a total of up to 800 billion rupiah.
PINS Indonesia’s business covers solutions for telecommunication devices and network security.
Kurniawan said the proceeds from the sale will be used to help finance capital expenditures and the acquisition of a handset distributor.
$1 = 11,790 rupiah Reporting By Fathiyah Dahrul, Writing By Fransiska Nangoy, Editing by Jonathan Thatcher and Matt Driskill