SHARE SWAP MITRATEL WITH TBIG

SHARE SWAPMITRATEL with TBIGSyndicate 4:Ibrahim Akbar (29114850)Dhewangga Wisnu(29114935)Wan Havid Adris (29114751)Aulia Puti Swity (29114804)Delvina Noorfazia (29114853)BackgroundAs the Project Blossom arise, PT Telkom is relasing all of its towers, including Telkomsel and Mitratel which owned 18.000 towers, open to market.

PT Telkom is planning to gradually swap the ownership in Mitratel to Tower Bersama Infrastructure Group (TBIG), a public-listed company operating in tower rental business.

Share Swap - Mitratel & TBIG Timeline2010May. Project Blossom arisen.

2012May. Arief Yahya became President Director of PT Telkom.August. PT Barclays Capital Securities Indonesia, as consultant, analyze Share Swap option. There are two main candidates, TBIG and Protelindo.

2013August. TBIG was chosen and proposed to Board of Commissioners and joint meeting of Directors.December. DPR reject the proposal and demand the ministry of BUMN to also reject it.

Share Swap - Mitratel & TBIGTimeline2014July. Arief Yahya proposed the Share Swap to Board of Commissioners.August. Board of Commissioners proposed to Ministry of BUMN.October. TBIG signed the agreement to swap the share with PT Telkom.

2015June. Rini M Soemarno, Minister of BUMN, declared that the Share Swap is cancelled. July. Telkom denied Rini M Soemarno. The CSEA (Conditional Share Exchange Agreement) between Mitratel and TBIG is extended in order to wait for KPK review and Rapat Dengar Pendapat (RDP) with Commission VI DPR. Share Swap - Mitratel & TBIGTermsShare Swap Agreement with TBIG:Trade a full ownership of Telkom in Mitratel with 13.7 % ownership in TBIG.Telkom gains fresh cash 1.7 Trillion.TBIG would take over the debt of Telkom 2.63 Trillion.Telkom gains networking capital 543 Billion upon the agreement.

Share Swap - Mitratel & TBIGShare Swap Scheme

Share Swap - Mitratel & TBIGConsideration on Share SwapGives optimal value. Mitratel could reach Rp 9.8 trillion compared to IPO with only Rp 7.9 to 8.6 trillion.Quick transaction process, less than IPO requires 6 to 9 months.Value assurance by treaty.According to CLSA (Credit Lyonnais Securities Asia) Indonesia, Mitratel only contribute Rp 1.5 Trillion in 2013 to PT Telkom, which is only 2% from total revenue. Take over 762.5 Million shares of TBIG would yield Rp 6 to 8 Trillion if TBIG shares are valued Rp 8 to 10 Thousand per share. Share Swap - Mitratel & TBIGLoss Potency on Share SwapTelkom loses complete control of ownership in Mitratel.Telkom do not acquire control on TBIG. Only 13.7 % ownership. Extending the ownership requires conditions.Telkom, as seller, has to pay tax Rp 1.5 trillion.Telkom also is obliged to pay tax for the devidend since the share ownership in TBIG is below 25%.

Share Swap - Mitratel & TBIGLegal RiskPP no. 39 Tahun 2014 about Daftar Bidang Usaha yang Tertutup untuk Penanaman Modal Asing. Pasal 1 ayat (1) dan (2). Lampiran 1. Mitratel is classified as Bidang Usaha yang Tertutup, Komunikasi dan Informatika.

UU no. 1 Tahun 2004 about Perbendaharaan Negara. Pasal 45 ayat (2).Telkom should get permittion from DPR to execute the share swap. Because the share transaction exceed Rp. 100 Billion.

Share Swap - Mitratel & TBIGReferencewww.tempo.cowww.cnnindonesia.comwww.pribuminews.comPP no. 39 Tahun 2014 UU no. 1 Tahun 2004

Share Swap - Mitratel & TBIGT H A N K Y O U- Syndicate 4 - Share Swap - Mitratel & TBIG