Telkom buys AriaWest (almost)

Lifting a big legal cloud from over the company, Indonesian telecom company PT Telkom finally reaches an agreement to buy AriaWest.

The drawn-out saga of KSO III is tantalisingly close to resolution. PT Telkom has agreed in principal to buy out AriaWest from its West Java KSO III operations. The deal brings to an end nearly two years of tortured negotiations that had already gone to legal proceedings at the ICC courts in Geneva.

Under the terms of the deal, Telkom will pay $64.5 million in cash and $120 million in 11 semi-annual installments over the next five-and-a-half years. Telkom has also agreed in principle to assume AriaWest's $270 million debt but it is still negotiating with the banks for some restructuring of that debt load.

We are not asking for a lot, says...

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