Axiata buys 95% stake in Indonesia's Axis

by **Cals** Thu 26 Sep 2013, 17:30

Published: Thursday September 26, 2013 MYT 1:36:00 PM
Updated: Thursday September 26, 2013 MYT 1:59:38 PM
Axiata buys 95% stake in Indonesia's Axis

KUALA LUMPUR: Axiata Group Bhd’s Indonesian unit PT XL Axiata Tbk (XL) has bought a 95% stake in PT Axis Telekom Indonesia (Axis), according to a Bursa filing on Thursday.
Axiata said Axis has an enterprise value of US$865mil (RM2.8bil).
The filing also noted the remaining 5% will be held by a local Indonesian shareholder.
Axiata said it has entered into a conditional sale and purchase agreement with Saudi Telecom Company and its unit Teleglobal Investments BV to buy Axis.
It said with the acquisition, it would allow Axiata to reach over 65 million customers at the same time aid in its expansion plans.
Axiata president and group chief executive officer Datuk Seri Jamaludin Ibrahim said as the majority shareholder of XL, Axiata strongly supports the transaction.
“We are a long term investor and the acquisition is in line with our strategy of continued investment in every country we operate in and supporting in-market consolidation where it benefits all parties.”
“We are confident we can successfully execute the integration as we did with Hello and Smart in Cambodia as well as Suntel and Dialog in Sri Lanka. Both acquisitions saw smooth and successful integration both strategically and financially,” he said.
Axiata said both companies have integration plans and teams in place, which, post regulatory approvals,will drive integration and synergies with XL’s strong execution track record and cost leadership DNA.
Merrill Lynch (Singapore) Pte. Ltd. (Bank of America Merrill Lynch) is acting as exclusive financial advisor to XL for this transaction.