Smartfren Group (FREN) Purchases Moratel for IDR 360 Billion

FREN Purchases Moratel for IDR 360 Billion

Netgenz - Economy, and Business | Issuer of the Sinar Mas Group in the telecommunications sector, PT Smartfren Telecom Tbk. (FREN) purchased shares of PT Mora Telematics Indonesia (Moratel).


FREN STOCK

Director of Smartfren Telecom Antony Susilo conveyed that FREN through its subsidiary, PT Smart Telecom (Smartel) invested in shares in Moratel. FREN controls 99.99 percent of Smartel shares. On May 25, 2021, Smartel signed a conditional equity participation agreement with PT Candrakarya Multikreasi (CKM) and PT Gema Lintas Benua (GLB). CKM and GLB are Moratel shareholders.


"Smartel invested 20.5 percent of Moratel's shares with a transaction value of IDR 360 billion," he explained on the Indonesia Stock Exchange website, Friday (28/5/2021). With this investment, Smartel becomes a minority shareholder in Moratel, does not become a controlling shareholder, and does not place management in Moratel.


Investments in shares are carried out in the context of developing a strategic business between FREN, Smartel, and Moratel in the future. Quoting Moratel's official statement, throughout 2010 to 2012, the Company was active in developing international networks by building submarine fiber optic cable networks BDM (Batam-Dumai-Malacca) and B3JS (Jakarta-Bangka-Bintan-BatamSingapura), so that the fiber optic cable network which has been successfully built until 2012 is 7,600 km long.


On the domestic side, Moratel strengthened its network by building the Sumatra Backbone in 2010, and Metro-e-infrastructure in 2014, bringing the total network it had in 2014 to reach 9,700 km. In 2018, the company executed the construction of a fiber-optic network with the second-longest number of cables in Indonesia that stretches from Denpasar-Java-Sumatra to Singapore.


Not only covering the telecommunications sector, but Moratel also created new innovations in 2016 by penetrating the retail market (FTTx) through the brand "Oxygen.id". The Indonesian government also entrusted Moratel to carry out a national strategic infrastructure project priority for the West Palapa Ring and East Palapa Ring Projects in 2016.

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