There's Hong Kong Conglomerate Li Ka-shing Behind The Merger Of Indosat With Tri, Men With Assets Of IDR 454 Trillion

Hong Kong-born conglomerate, Li Ka-shing. (Photo: Doc. Forbes)

JAKARTA - Finally, the merger between PT Indosat Tbk (ISAT) and PT Hutchison 3 Indonesia (Tri) officially took place. Ooredoo QPSC (Ooredoo) and CK Hutchison Holdings Limited (CK Hutchison) as the parent company of Indosat and Tri announced the signing of a definitive transaction agreement for the proposed merger of their respective telecommunications businesses in Indonesia on Thursday, September 16 yesterday.

In a press release, quoted on Friday, September 17, Ooredoo and CK Hutchison revealed that the total transaction value in this merger reached US$6 billion or around IDR 85.62 trillion. The combined company of the two was named PT Indosat Ooredoo Hutchison Tbk.

Actually, the news about this merger has been heard for a long time, to be precise in 2020. Each party, both Indosat and Tri several times also gave statements related to this merger action.

Meanwhile, the merger of Indosat and Tri cannot be separated from the owner of CK Hutchison Holdings Limited, namely the conglomerate from Hong Kong, Li Ka-shing. The 93-year-old man is the richest person in Hong Kong for the 2021 period according to Forbes.

Through CK Hutchison Holdings Limited, Li Ka-Shing's business has grown, which includes port investment companies, property developers, and mobile operators. For information, until this news was published Friday, September 17, Li's wealth based on the Forbes report of The World's Real-Time Billionaire was worth US$ 31.8 billion, or around IDR 454 trillion (exchange rate of IDR 14,300 per US dollar).

With that much wealth, Li Ka-shing occupies the 43rd position on the list of the richest people in the world this year. Li Ka-shing has the nickname "Superman" because he is considered one of the most influential businessmen in Asia.

For information, Li Ka-shing actually retired as Chairman of CK Hutchison Holdings and CK Asset Holdings in May 2018. However, he is still a senior advisor to the company.

CK Hutchison Holdings is confident that the agreement signed with Ooredoo will have a positive impact on both the financial performance and the telecommunications sector in Indonesia. Group Co-Managing Director of CK Hutchison Holdings Canning Fok said the agreement will create a stronger and more innovative telecommunications company in Indonesia.

This is also a transaction that has added value for shareholders and other stakeholders.

"Indosat Ooredoo Hutchison will be in a position to accelerate the pace of network development and development to support the Indonesian government's digital agenda, as well as provide benefits to customers and the Indonesian people in general", he said.

Indosat Ooredoo Hutchison will become the second-largest telecommunications company in Indonesia with an estimated annual revenue of up to US$3 billion. The entity will have the scale, financial capability, and expertise to compete more effectively.

The combination of assets and products from Indosat Ooredoo and Tri which complement each other will encourage innovation and network development that will enable the company to provide the best digital services and expand its product offerings for customers in various parts of Indonesia.