Indonesian mobile operator XL Axiata is looking to finance its US$865m acquisition of smaller rival Axis with loans from shareholders and banks.
XL Axiata president director Hasnul Suhaimi was quoted telling reporters that US$500m will come from…
Indonesian mobile operator XL Axiata is looking to finance its US$865m acquisition of smaller rival Axis with loans from shareholders and banks.
XL Axiata president director Hasnul Suhaimi was quoted telling reporters that US$500m will come from shareholders and the remaining US$365m from financial institutions.
The operator was not immediately able to confirm the reports or comment on the names of the lenders.
XL is 66.5%-owned by Malaysian giant Axiata while the remaining shares are in free float.
A few days ago, the telco obtained a US$300m debt package from DBS Bank, the proceeds of which will be used to fund its debt and capital expenditure, as well as other general corporate purposes, it said at the time.
A month before that, XL Axiata had received governmental approval to merge its assets with those of Axis. The transaction marked one of the first consolidation moves in Indonesia’s saturated market and will give XL an expected 20% market share as well as precious spectrum.
Suhaimi said he expects profits from the merged entity to start recovering by 2019.
The transaction, which has received shareholders’ approval but is still subject to regulatory clearance, is scheduled to complete by 31 March 2014.
