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Indonesia's largest listed company, Telkom, is again facing the possible delisting of its American Depositary Receipts after failing yet again to meet an SEC deadline to file its annual results.
Telkom, which faced a similar debacle last year over its 2003 results, is seeking a 15-day extension from the Securities and Exchange Commission to register its 2004 results with the US market regulator.
But in a statement received on Monday, Telkom said it might not be able to to meet even that and “no additional extensions of time will be possible”. The 15-day extension is the maximum permitted under SEC rules.
But analysts played down the significance of Telkom's failure to meet the SEC deadline.
“Because they've been so regular about these debacles, we haven't been paying much attention to it,” said one analyst, although he added that it was “embarrassing” for Telkom. According to the company, the delay hinged on questions raised by the SEC over its 2003 results. Those were also filed late because the initial audit did not meet US standards and Telkom had to scramble to hire a KPMG affiliate to re-examine its books.
The company said it had sought to answer the SEC questions in April. But it received follow-up queries from the regulator last month and was now preparing a further response.
State-controlled Telkom is the country's largest fixed-line and cellular provider. It is also a favourite among foreign equity investors because of the ongoing rapid growth of Indonesia's mobile sector. Its shares fell Rp100, or 1.9 per cent, to Rp5,150 on the news and on fears that the weaker rupiah could affect its ability to deal with its $750m in dollar-denominated debt.
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