Mandiri Sekuritas BTEL to establish a new subsidiary (BTEL, Rp142, Under-review)

BTEL plans to establish a new subsidiary which is engaged in data on 3Q10. Bakrie Connectivity will provide data services and will manage optical networking, including supervise the media business (TV One, ANTV and Vivanews) owned by Bakrie Group. BTEL will deposit the initial capital amounting of Rp500bn, with funds obtained from US$250mn global bond issuance. BTEL will issue a global bond maturing in May 2015, with interest up to 11.5% and it has rating of B from Fitch Ratings agency.