PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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5. ACQUISITION OF KSO INVESTORS AND KSO IV continued
a. Dayamitra continued
1. Option Agreement continued As of September 30, 2005, the remaining option strike price to be paid to TMC, before
unamortized discount, amounted to US15.0 million equivalent Rp154,930 million Note 25. As of March 27, 2006, the option strike price has been fully repaid.
2. Escrow Agreement An Escrow Agreement dated May 17, 2001, was entered into by and among the Company,
Dayamitra, PT Intidaya Sistelindomitra “Intidaya”, Cable and Wireless plc “CW plc”, PT Mitracipta Sarananusa “Mitracipta”, TMC, Tomen Corporation “Tomen”, Citibank
N.A. Singapore the Singapore Escrow Agent and Citibank N.A. Jakarta the Jakarta Escrow Agent, to establish an Escrow Account and facilitate the payment Note 16.
b. AWI
Effective on July 31, 2003 the “closing date”, the Company acquired 100 of the outstanding common stock of AWI, the investor in KSO III, for approximately Rp1,141,752 million plus the
assumption of AWI’s debts of Rp2,577,926 million. The purchase consideration included non- interest bearing promissory notes with a face value of US109.1 million Rp927,272 million, of
which the present value at the discount rate of 5.16 at the closing date was estimated to be US92.7 million Rp788,322 million. The promissory notes are to be paid in 10 equal semi-
annual installments beginning July 31, 2004.
The acquisition of AWI has been accounted for using the purchase method of accounting. There was no goodwill arising from this acquisition. The following table summarizes the final purchase
price allocation of the acquired assets and assumed liabilities based on estimates of their respective fair values at the closing date:
Rp
Distributable KSO revenue receivable 540,267
Property, plant and equipment 1,556,269
Intangible assets 1,982,564
Other assets 34,372
Deferred tax liabilities 393,794
Fair value of net assets acquired 3,719,678
Borrowings assumed 2,577,926
Amount of cash and promissory notes given up 1,141,752
Intangible assets identified from this acquisition represent right to operate the business in the KSO area and the amount is being amortized over the then remaining term of the KSO agreement of 7.4
years Note 15.
The Company’s consolidated results of operations include the operating results of AWI since July 31, 2003, the date of acquisition.
PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued SEPTEMBER 30, 2005 AND 2006, AND FOR THE NINE MONTHS PERIOD ENDED
SEPTEMBER 30, 2005 AND 2006 Figures in tables are presented in millions of Rupiah, unless otherwise stated
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5. ACQUISITION OF KSO INVESTORS AND KSO IV continued b. AWI continued
