Axiata Group Forum Jakarta XL Axiata Axis Capital..
Jakarta XL Axiata Axis Capital group XL Axiata completes Axis acquisition9 Years AgoIndonesian mobile
operator XL Axiata, a subsidiary of Malaysia’s Axiata
Group, has completed the acquisition of smaller rival Axis Telekom. Earlier
this month the transaction received approval from Indonesian anti-monopoly
authority Komisi Pengawas Persaingan Usaha (KPPU) – the last regulatory hurdle
needed for the deal to proceed – with both companies’ shareholders plus other
Indonesian regulators already having approved the takeover. In December 2013
the Ministry of Communications and Information Technology (MoCI) agreed to the
transaction going ahead on the condition that the enlarged entity hand back
several blocks of 2100MHz mobile frequency spectrum. Axiata said that through
its acquisition and merger with Axis, XL will provide better and more comprehensive
services to a greater number of customers throughout Indonesia. ‘With the
conclusion of this acquisition, XL has now become a majority shareholder in
Axis,’ commented XL’s president director Hasnul Suhaimi, adding: ‘We thank and
offer the utmost appreciation for the support of several parties, particularly
regulators, shareholders as well as XL and Axis consumers, all of which made
the acquisition possible. Consolidation in the telecommunications sector has
become a necessity to ensure a healthy and sustainable industry.’
In September 2013 XL Axiata signed a conditional sale and
purchase agreement with Saudi Telecom Company (STC) and STC’s subsidiary
Teleglobal Investments to acquire the latter’s 95% stake in Axis for USD865
million. XL Axiata has announced that USD500 million of the acquisition price
will come from its Malaysian parent, while the remainder will be sourced via
bank loans. The merged Axiata/Axis will have a combined base of more than 77
million subscribers, equivalent to around 24% of the total mobile market, but
still well behind market leader Telkomsel which claims over 40% of all users. |