Lippo Group sells NTS stakes to Maxis

Jakarta (ANTARA News) - Maxis Communications Bhd of Malaysia has increased its stake in cellular phone operator firm PT Natrindo Telepon Selular (NTS) to 95 percent by buying 44 percent of Lippo Group`s shares in NTS, an NTS spokesperson said.

NTS head of corporate communications Anita Avianty confirmed here Wednesday Maxis`s acquisition of the shares of Lippo Group which had a majority stake in NTS.

But Anita did not give further details on the acquisition.

Celularnews.com on Tuesday reported the selling of 44 percent of Lippo Group`s stake worth US$123.9 million in NTS to Kuala Lumpur-based Maxis.

Meanwhile, Communication and Information Minister Sofyan Djalil said NTS had informed his office of the sale.

The Maxis`s dominant position in NTS would not be a problem, the minister said. "Clauses in Government Regulation No.20/1994 allow a foreign firm to control up to 95 percent of a domestic telecommunication company," he said after the launch of e-Indonesia Initiative Forum here Wednesday.

Lippo Group sold its stake in NTS to Maxis after it failed to develop telecommunication infrastructure although the cellular phone operator had obtained an operation license three years ago, he said.

Maxis had said it would invest $500 million in the next one year to set up a telecommunication network as stipulated by the Indonesian government.

NTS has so far provided people in East Java with 12,000 cellular phone lines.