Malaysia's Axiata to dispose of 5% stake in XL

Malaysia's Axiata to dispose of 5% stake in XL

Malaysian multinational telecommunications conglomerate Axiata Group, through indirect wholly-owned subsidiary Axiata Investments (Indonesia, AIISB), is selling a 5% stake in its Indonesian operator XL Axiata to Ferrymount Investments Ltd (FIL) for IDR1.44 trillion (USD101 million).

The proposed disposal will see Axiata's stake in XL trimmed to 61.5% from 66.5% currently.

In a filing to Bursa Malaysia, the company said AIISB has entered into a sale and purchase agreement with Ferrymount Investments, Procap Partners Ltd, and Tiga Investments Pte Ltd for the disposal of 533.4 mil ordinary shares in XL.

Procap and Tiga Investments, acting as guarantors will unconditionally and irrevocably guarantee the discharge by the buyer of its obligations under the sale and purchase agreement (SPA).

“The Disposal facilitates the timely introduction of Indonesia-focused investors in XL who acknowledge the value and opportunities in the domestic telecommunications sector.

“Procap and Tiga Investments have extensive knowledge, experience, business partnerships, and investments in Indonesia, as well as in global capital markets. Axiata is of the view that the Disposal which provides XL with access to the aforesaid business partnerships of Procap and Tiga Investments amongst others, will place XL in a better operational footing shortly,” said Axiata in the bourse filing.

Axiata’s investment in XL commenced when TM International, a wholly-owned investment arm of Telekom Malaysia, acquired a 23.1% stake in Excelcomindo Pratama on 13 January 2005.


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