Saudi Telecom (STC) has increased its stake in cellco Natrindo Telepon Seluler (NTS), which operates under the Axis brand, from 51% to 80.1%, TelecomFinance has confirmed.
The deal is exempt from foreign ownership cap because STC’s presence in Axis…
Saudi Telecom (STC) has increased its stake in cellco Natrindo Telepon Seluler (NTS), which operates under the Axis brand, from 51% to 80.1%, TelecomFinance has confirmed.
The deal is exempt from foreign ownership cap because STC’s presence in Axis precedes the rules, TelecomFinance understands.
Correspondingly, Malaysia-baSTC has agreed to provide an initial loan of US$81m to Axis, followed later by a US$290m shareholder facility.
Bank of America Merrill Lynch is advising STC on the transaction.
A separate US$412m loan provided by Maxis to Axis will reportedly be cancelled. Maxis is responsible for a US$61m equity payment, TelecomFinance understands.
Muhammad Bin Suliman Al-Jasser, chairman of STC, was quoted saying that the Indonesian market is attractive because of its young demographic. Closing of the restructuring is expected to be completed by April 2011.sed Maxis Communications (MCB), which together with STC owns Axis, will see its stake in the company decrease from 44% to 14.9%. Investor Harmersha Investindo (PTHI) will continue to own 5% of Axis.
