Saudi Telecom Company (STC) is in talks to sell its Indonesian mobile subsidiary Axis, according to the Mubasher news website.
The discussions are being held with the potential buyer, whose name has not been revealed, as well as senior lenders and other…
Saudi Telecom Company (STC) is in talks to sell its Indonesian mobile subsidiary Axis, according to the Mubasher news website.
The discussions are being held with the potential buyer, whose name has not been revealed, as well as senior lenders and other creditors.
The report said that STC opted for a sale following poor performance of the unit, which had revenues of SR226.4m (US$71m) for the first three months of 2013.
Axis – a medium-sized carrier reportedly valued at about US$1bn including debt – operates in a highly-competitive mobile market, home to 10 companies.
STC, which first acquired a stake in Axis in 2007, directly owns 80.1% of the company. Malaysia’s Maxis Communications also has a small stake in Axis.
In late May, it was reported that another Malaysian telco, Axiata, was considering making an offer for Axis.
Any bid would reportedly be made by Axiata’s Indonesian subsidiary, XL Axiata, the third-largest operator in the country.
A deal between Axis and XL Axiata would give the latter the mobile spectrum it needs to expand in the Indonesian mobile market, according to reports.
STC and Axiata were not immediately available for comment before the press deadline.
