(Reuters) - PT Telkom Indonesia (Persero) Tbk has signed a conditional agreement to integrate its fixed broadband business IndiHome into PT Telekomunikasi Selular (Telkomsel) for 58.3 trillion rupiah ($3.91 billion), the companies said on Thursday.
"We believe this is a rare opportunity for Telkomsel to tap into the high-growth fixed broadband market in Indonesia by partnering the country's largest broadband operator which is profitable and cash generating," said Yuen Kuan Moon, Group CEO, Singtel, which owns 35% of Telkomsel.
Telkom Indonesia owns the remaining 65% of Telkomsel.
If completed, the integration will result in Singtel's stake in Telkomsel reduced from 35.0% to 29.6% of the enlarged integrated mobile and fixed broadband company, Singtel said.
The deal is expected to be completed in the early third quarter of 2023, Singtel said.
IndiHome has a 75.2% market share in Indonesia, Singtel said.
($1 = 14,920.0000 rupiah)
(Reporting by Harish Sridharan in Bengaluru; editing by Uttaresh Venkateshwaran)