JEDDAH: Saudi Telecom Co (STC) said Saturday it planned to raise its share in its affiliate NTS in Indonesia to 80 percent, and lend it more than $370 million, as it readies to expand in the Indonesian market. Natrindo Telepon Selular (NTS Indonesia), now 51 percent owned by STC and 44 percent owned by Malaysia's Maxis Communications Bhd (MCB) , has set up a five-year plan to expand in Indonesia's telecom market, STC said in a bourse statement. "Saudi Telecom has shown interest in taking this opportunity to increase its shares in (NTS) due to the growth prospects in the Indonesian economy," STC said. "It agreed Wednesday to give an initial loan of $81 million, followed by another loan of $290 million to be paid according to the firm's operational needs," the firm said. The deal will cancel all the loans made to NTS by Maxis Communications, amounting to almost $412 million, and increase STC's stake to 80.1 percent from 51 percent Maxis Communications' share will fall to 14.9 percent from 44 percent, while the local partner will maintain a 5 percent stake. The deal has yet to be approved by the Indonesian regulators. NTS began its mobile phone services in 2008 and has more than 10 million customers, covering 400 cities in Indonesia, the statement added. STC will also offer an $81 million loan and is committed to offer another $290 million when necessary as part of the Indonesian unit's five-year plan, according to the statement. Maxis will cancel its loans to Axis totaling $412 million. Axis started to offer mobile phone services in mid-2008. With more than 10 million subscribers, the company covers more than 400 cities in Indonesia, the statement said. STC, the leading telecom provider in the Kingdom, has enabled 4,000 homes in the kingdom with FTTH (fiber optics to the home) service. Demand for STC's Verve fiber optics service is rapidly increasing.
