Indonesian operator XL Axiata has agreed terms to resell the 2.7% stake it had bought back from investors who did not approve of its deal to buy smaller rival Axis.
The country’s second-largest telco has hired Mandiri Securities to sell 231.1 million…
Indonesian operator XL Axiata has agreed terms to resell the 2.7% stake it had bought back from investors who did not approve of its deal to buy smaller rival Axis.
The country’s second-largest telco has hired Mandiri Securities to sell 231.1 million shares at Rp5,708 (US$0.49) each, which would net about Rp1.31trn (US$112m) in total.
The valuation is higher than an initial target of Rp5,280 (US$0.45) that would have raised roughly Rp1.22trn (US$104m).
CFO Adlan Tajudin said the move would strengthen the company’s financial position in Indonesia’s fiercely competitive telecoms market.
XL Axiata, which is majority-owned by Malaysian giant Axiata, wrapped up its US$865m Axis acquisition in March. It marked one of the first consolidation moves in Indonesia’s saturated market, where there are now eight mobile operators.