Following approval from shareholders, the government and several local regulators, the merger between Indonesian mobile rivals XL Axiata and Axis has been given the go-ahead by the antimonopoly commission.
XL, owned by Malaysian giant Axiata, said it…
Following approval from shareholders, the government and several local regulators, the merger between Indonesian mobile rivals XL Axiata and Axis has been given the go-ahead by the antimonopoly commission.
XL, owned by Malaysian giant Axiata, said it has now complied with all regulatory requirements. The deal is expected close by 31 March as scheduled.
In late September last year, Indonesia’s second-largest mobile operator agreed to acquire Saudi Telecom (STC)-held Axis for a symbolic cash consideration of US$100 plus the assumption of US$865m in debt.
The transaction marks one of the first consolidation moves in Indonesia’s saturated market and allows XL Axiata to secure some precious spectrum.
However, one of the conditions for regulatory approval included the pledge by both companies to return 10 MHz of spectrum in the 2,100 MHz band.
A month ago, XL president director Hasnul Suhaimi told reporters that the deal would be financed using US$500m worth of shareholders’ loans while the remaining US$365m will come from financial institutions.
