Malaysian giant Axiata Group is planning to sell around 20% of its 86.5% stake in Indonesian subsidiary XL Axiata (formerly Excelcomindo) via an international private placement.
Goldman Sachs is acting as sole global coordinator and joint bookrunner,…
Malaysian giant Axiata Group is planning to sell around 20% of its 86.5% stake in Indonesian subsidiary XL Axiata (formerly Excelcomindo) via an international private placement.
Goldman Sachs is acting as sole global coordinator and joint bookrunner, along with CIMB Investment Bank. Goldman Sachs, CIMB Investment Bank and PT Mandiri Sekuritas are joint lead managers to the offering.
The price and definite size of the stake will be released after the bookbuilding process is complete, although the sale could glean around US$50m based on the XL’s current share price.
Axiata president and chief executive Jamaludin Ibrahim said: “As the majority shareholder of XL, Axiata believes an increase in the free float is positive for XL’s long term corporate development as one of Indonesia’s flagship companies.”
Ibrahim added that XL will remain a subsidiary of Axiata Group after the offering: “We will remain fully committed as a strategic shareholder of XL.”
Etisalat owns a 13.3% stake in XL, leaving a free float of just 0.2%. Axiata’s equity interest will fall to 66.5% when the deal closes.
The placement is scheduled to conclude in April 2010.
Shares in XL Axiata plummeted 1.41% on the Jakarta bourse as news of the placement broke.
Axiata Group is the international wing of Telkom Malaysia.
