HHP Law Firm ("HHP") has advised PT Telekomunikasi Indonesia (Persero) Tbk (Persero) Tbk ("Telkom Indonesia") on the spin-off of its broadband company IndiHome to Telkomsel for a consideration of IDR 58.3 trillion satisfied through the issuance of new shares by Telkomsel.

IndiHome is the largest fixed broadband provider in Indonesia, with more than a 50% market share. The separation and integration of IndiHome services into Telkomsel is part of TelkomGroup's strategy to strengthen its position as a leading integrated telecommunications player in Indonesia.

The transaction is expected to be value accretive for Telkomsel and has received support from Telkom and Singtel as shareholders. The spin-off is expected to be completed by early Q3 2023, subject to regulatory and shareholder approvals. Telkom and Telkomsel signed a Conditional Spin-off Agreement on 6 April 2023.

The HHP team was led by Senior Partner Iqbal Darmawan. Iqbal was supported by Associate Partner Adhika Wiyoso, Senior Associate Denny Irawan, and Associates Devina Andrasanti, Bryan Sonny Wisakono, Naztasha Cesty, Cesario Benjamin and Nathan Dippos Fajar. Associate Partner Dyah Ayu Paramita and Associate Jessenia Agnes Salim assisted with the antimonopoly analysis and advice, while Associate Partner Wiku Anindito and Associate Rafiqi Ramadhan Padmowijoto assisted with intellectual property related matters.

Senior Partner Iqbal Darmawan commented: "We are pleased to have advised Telkom Indonesia on its strategic spin-off of IndiHome to Telkomsel to unlock near-term earnings accretion for Telkomsel shareholders as well as long-term growth opportunities for TelkomGroup in one of the world's fastest growing fixed broadband markets."

HHP has also advised on a number of high-profile telecom M&A deals in Indonesia, including the landmark USD 6 billion merger between CK Hutchison Holdings Limited and PT Hutchison 3 Indonesia which was completed in January last year. This strengthened HHP's strong footprint in the telecom sector (and TMT generally) in Indonesia.

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