PT Indosat, the Indonesian arm of Qatari telecom firm Ooredoo, will be merged with and PT Hutchison 3 Indonesia, local reports have said.
H3I is a telecom company owned by Hong Kong-based CK Hutchison Holdings.
The merger deal is valued at $6 billion, said the local reports, with the merged company to be named PT Indosat Ooredoo Hutchison.
It will reportedly be the second-largest mobile telecoms company in the country, with an estimated annual revenue of approximately $3 billion.
The Ooredoo Group currently has a controlling 65 percent shareholding in Indosat Ooredoo through Ooredoo Asia, a wholly-owned holding company.
The merger will reportedly result in CK Hutchison receiving newly issued shares in Indosat Ooredoo amounting to 21.8 percent and PT Tiga Telekomunikasi Indonesia amounting to 10.8 percent of the merged company.
Upon closing, Indosat Ooredoo Hutchison is expected to be jointly controlled by Ooredoo Group and CK Hutchison.
It will reportedly remain listed on the Indonesian Stock Exchange, with the government retaining a 9.6 percent shareholding, PT Tiga Telekomunikasi Indonesia holding a 10.8 percent shareholding, and other public shareholders holding approximately 14 percent.
JP Morgan is said to be acting as exclusive financial advisor to Ooredoo Group, while Goldman Sachs & Co and HSBC are acting as joint financial advisors to CK Hutchison.
Barclays is the financial advisor to Indosat Ooredoo.
Following this merger, the Indonesian mobile market is expected to retain a healthy level of competition.