Indosat Ooredoo Hutchison [IDX:ISAT] (IOH), an Indonesian telecommunications subsidiary of Ooredoo [QSE:ORDS], has hired Citi to advise on the potential sale of its fiber-optic business, three sources familiar with the situation said.

The sellside has yet to reach out to potential buyers, given that the mandate was only awarded two weeks ago, according to the first source.

The process could begin in March as the market awaits policy guidance from the incoming government following the general elections scheduled for early next year, the source added. Indonesia is set to elect its President, Vice President, People’s Consultative Assembly on 14 February 2024.

Indosat’s fibre-optic business could be valued at more than USD 1bn and could attract companies in the industry, as well as investment funds, as reported by a newswire in September.

Indosat, Ooredoo, and Citi did not respond to requests for comment.

To keep pace with its rapidly growing competitors, IOH would need additional funding to further scale up its fiber-optic business, as this news service reported in July.

IOH, which has a market cap of IDR 76.6trn (USD 4.9bn), envisions becoming the most preferred digital telco in the country by developing a new low-latency and high-capacity data network through fiber optic cables that connects Indonesian cities to Australia, Guam, Singapore, and the US through Indonesian waters on its 18,000km system, as per its 2022 annual report.

The company is 65% owned by Ooredoo Asia Pte, 14.29% by the Indonesian government, and 20.71% by the public.