Saudi Telecom is looking to increase its stake in Indonesian cellco Natrindo Telepon Seluler (NTS), which operates under the Axis brand, from 51% to 80.1%, according to a Zawya report.
Correspondingly, Malaysia-based Maxis Communications (MCB), which…
Saudi Telecom is looking to increase its stake in Indonesian cellco Natrindo Telepon Seluler (NTS), which operates under the Axis brand, from 51% to 80.1%, according to a Zawya report.
Correspondingly, Malaysia-based Maxis Communications (MCB), which together with STC owns Axis, will see its stake in the company decrease from 44% to 14.9%. Harmersha Investindo (PTHI) will continue to own 5% of Axis.
According to reports citing a notice in Arabic to the Saudi Stock Exchange, STC has agreed to provide an initial loan of US$81m to the Indonesian cellco, followed later by a US$290m facility.
The US$412m loan provided by Maxis to Axis will reportedly be cancelled.
Muhammad Bin Suliman Al-Jasser, chairman of STC, was quoted saying by Zawya that the Indonesian market offers a compelling growth opportunity with significant potential given the country’s young demographic.
Closing of the restructuring is expected to be completed by April 2011.
