CT Corp to Buy 80% Stake of Telkomvision
June 5, Indonesian billionaire Chairul Tanjung agrees to buy 80% stake in the second largest pay-TV operator in the country, Telkomvision. This heats up the current competition taking place in the pay television market that is controlled by Harry Tanoesoedibjo, another tycoon in the industry.
As Indonesia's middle class households expand, the sector is expected to rapidly grow. Unlike India and China who have pay-TV subscriptions at 83% and 54%, respectively, Indonesia only has a total of 7% of its households to have pay-TV.
According to sources that have direct knowledge of said deal, the opportunity to grow brought by the pay-TV market will increase the number of investors.
Tanjung's investment holding company, CT Corp is currently in discussions with PT Telekomunikasi Indonesia, the country's largest TV firm. Telkom stated that the talks included offers of buying the stake of either Telkomvision or PT Indonusa Telemedia.
The offered deal is expected to have less than US$100 million according to sources.