PT Telkom Indonesia is considering selling a stake in PT Finnet Indonesia that could value the state-owned telecommunications firm’s fintech unit at about $100 million to $150 million, according to people familiar with the matter.
(Bloomberg) — PT Telkom Indonesia is considering selling a stake in PT Finnet Indonesia that could value the state-owned telecommunications firm’s fintech unit at about $100 million to $150 million, according to people familiar with the matter.
The Jakarta-based giant may introduce a new investor to help raise cash for Finnet while boosting its growth, the people said, asking not to be identified as the information is private. PT Mekar Prana Indah, a subsidiary of Bank Indonesia’s employee welfare foundation which owns a minority stake in Finnet, could also join the stake sale, one of the people said.
The stake may draw interest from other companies in the industry as well as investment funds, the people said.
Discussions are ongoing, details such as valuation could change and Telkom could decide not to go ahead with the stake sale, the people said. A representative for Telkom didn’t respond to requests for comment, while MPI representatives couldn’t immediately be reached.
Southeast Asian firms have been courting investors for fintech businesses, lured by the prospect of tapping into the region’s growing economy. PLDT Inc.-backed Philippines firm Maya was considering raising about $150 million, people familiar with the matter told Bloomberg News in February. Boost Holdings Sdn., a unit of Malaysian wireless giant Axiata Group Bhd., was weighing raising $50 million to $100 million in a new funding round, people familiar with the matter said in April.
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Telkom indirectly owns 60% of Finnet through its network telecom services and multimedia arm, PT Telkom Metra, according to the parent’s 2022 annual report. The fintech unit’s Finpay brand began operating in 2006, and provides digital payment services including fund transfers, payment gateways and the country’s standardized QR code payment system, or QRIS, its website shows. It is connected with around 90 banks, 800 online merchants and 100,000 outlets.
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