Sheikh Mohammed bin Abdulla Al Thani, Deputy Group CEO at Ooredoo addressing a press conference in Doha yesterday.
Doha: Ooredoo Group and CK Hutchison’s $6bn merger to form Indonesia’s second-largest mobile telecoms company Indosat Ooredoo Hutchison has been gaining positive response from the market and financial analysts following the announcement of the landmark telecoms transaction recently, Sheikh Mohammed bin Abdulla Al Thani, Deputy Group CEO at Ooredoo said yesterday.
Addressing a press conference, Sheikh Mohammed said the transaction was indeed positive for Ooredoo and strengthens the Group’s market position. He went on to reiterate a Reuters report saying the transaction is ‘placed to deliver a higher return on investment for all shareholders’.
“Reuters Breakingviews describes it as ‘could be one of those rare deals where everyone wins something’. This transaction is indeed positive for Ooredoo and strengthens the Group’s market position. We believe this merger will deliver great benefits for Ooredoo Group and Indosat Ooredoo shareholders, customers, employees, and for Indonesia,” he added.
It may be noted that Ooredoo and CK Hutchison have recently announced the signing of definitive transaction agreements for the proposed merger of their respective telecommunications businesses in Indonesia, Indosat Ooredoo and H31 to form Indosat Ooredoo Hutchison.
The $6bn merger, which is billed as Asia’s landmark telecoms transaction will consolidate the merged company as a new world-class digital telco for Indonesia with an estimated annual revenue of approximately $3bn.
“This transaction is perfectly in line with our Group strategy to operate as top 2 player in each of our markets and will generate enhanced returns for the Group, resulting in sustainable profitability to elevate future dividend potential. In fact, the economies of scale and the realisation of synergies between these highly complementary businesses will mean the merged company is well placed to create more value for shareholders,” added Sheikh Mohammed.
He also stressed that the merged company will retain the strong brands of Ooredoo and CK Hutchison, while the name Indosat Ooredoo Hutchison reflects the commitment of both companies to work together and use their combined expertise.
“For Indonesia, Indosat Ooredoo Hutchison will have the scale to support the country’s digital transformation and accelerate its economic recovery. We anticipate a significant enhancement in customer experience, as the merged company will be ready to drive the innovation and investment needed to deliver outstanding digital services across the country. Also, there will be more opportunities for employees, as they will be part of a larger, financially stronger, more innovative digital technology company,” Sheikh Mohammed said while addressing the media in his speech.
Responding to a query, he added that Ooredoo is also planning to roll out commercial 5G services across the Indonesian market after the completion of all necessary regulatory approvals. The company, which seeks to retain its position as a global leader in 5G services, has previously announced Indosat Ooredoo’s 5G launch in the cities of Solo and Surabaya, as well as in the Indonesian capital Jakarta.
“Indonesia has always been a very big market, and we are paying attention to that. Recently we had already tested and made a trial of the 5G launch, which is always subject to the approval of all stakeholders in the country. We are eager to be advanced in our technology, and we never hesitate to provide the best and latest technology to our customer and enhance the market where we operate,” Sheikh Mohammed added.
On Ooredoo’s expansion plans in other South East Asian markets and beyond through similar merger transaction, he said the company is always on the lookout for any opportunity that will expand and enhance the financial returns of its shareholders. “We never hesitate either through mergers or acquisition across all the operations that we have in the Middle East or South East Asia, or even outside of our current footprint. Ooredoo has a presence in the Mena region, South East Asia, and we also have operations in Palestine and Iraq. And in those emerging markets, there’s always a potential for many mergers or acquisition. We always see this as an opportunity. We have this potential and this is subject to our review further for the next 12 months,” he said.
The completion of the Indonesian merger transaction will be subject to approval of Ooredoo Group, CK Hutchison, Indosat Ooredoo shareholders, regulatory approvals and other customary terms and conditions. Assuming all approvals are received, the proposed combination is expected to be completed by end of 2021, Sheikh Mohammed said.
He added: “With the merger agreement now in place, we can turn our attention to closing the transaction in the coming months and then working with CK Hutchison to build a world-class digital telecoms company for Indonesia. I want to thank the Government of Indonesia for its progressive policies that enabled this merger and will allow for the creation of a more sustainable telecoms sector, which will ultimately benefit customers and shareholders. Also, I want to thank our Ooredoo teams and advisors who worked around the clock for nine months to make this happen”.
