JAKARTA (Yosefardi) – Investors also focused buying in shares of PT XL Axiata Tbk (EXCL) in morning trade after the company acquired 95% shares in PT Axis Telekom Indonesia for a cash consideration of US$100, but XL will procure the repayment of Axis’ debts of around US$865 million.
EXCL gained 3.6% to Rp4,350 per share with over 3.7 million shares exchanged hands. The stock however has fallen 23% from its peak year to date.
This acquisition will make XL Axiata a substantially bigger player than Indosat (ISAT), which is controlled by Qatar Telecom.
Axis is owned by Saudi Telecom Company and Teleglobal Investment BV. While Axis might be maintained as an operating subsidiary, the acquisition could save capital expenditures and operational expenditures at both XL and Axis.