Huawei may acquire stake in Bakrie Telecom

Huawei is reportedly set to acquire a 9% stake in struggling Indonesian CDMA operator Bakrie Telecom as part of a debt repayment procedure.

Bakrie Telecom secured shareholder approval to issue convertible bonds worth 56% of shares in the company, that will then be divided among its 50 creditors.

The convertible bonds are worth around 7 trillion rupiah ($530.5 million), with a price per share of 200 rupiah, four times higher than the company’s current trading price.

As Bakrie’s largest lender Huawei will receive bonds accounting for 9% of Bakrie Telecom shares. Indonesian independent telecom tower operators Protelindo and SUPR will receive stakes worth 7%  and 6.8% respectively, according to the report.