JAKARTA (yOSEFARDI) – Shareholders of PT XL Axiata Tbk (EXCL had Wednesday (Feb 5) approved XL’s decision to acquire and merge with PT Axis Telekom Indonesia (AXIS).
XL has obtained approvals from capital market regulators, Indonesia Stock Exchange and Financial Service Authority (OJK).
With the approvals, XL is now one step closer to lead consolidation in telecommunication industry in Indonesia, which is believed would bring more benefits to customers, industry and other stakeholders.
XL-Axis acquisition and merger plan has also been approved by the Ministry of Communication and Information Technology (Menkominfo) and Indonesia Investment Coordinating Board (BKPM).
Based on the conditional Sales Purchase agreement between XL and STC upon obtaining approval from the shareholders and all relevant regulators, XL will settle the US$ 865 million deal to Axis’ creditors.
To fund this transaction, XL will utilize loan combination from Axiata as XL’s shareholders amounting to US$500 million (around 58%) and loan from financial institutions constituting US$ 365 million (42%).
XL is 66.5% owned by Axiata Group Berhad through Axiata Investments (Indonesia) Sdn Bhd and public 33.5%, and is part of Axiata Group with Robi (Bangladesh),Smart (Cambodia), Idea (India), Celcom (Malaysia), M1 (Singapore), SIM (Thailand) and Dialog (Sri Lanka).