Axiata completes Axis acquisition, to finalise merger

by **Cals** Thu 20 Mar 2014, 18:43

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Thursday, 20 March 2014 12:24

KUALA LUMPUR (Mar 20): Axiata Group Bhd announced the completion of its acquisition of PT Axis Telekom Indonesia (Axis) by its subsidiary PT XL Axiata Tbk (XL), and added it will proceed with finalising the XL-Axis merger.

XL has finalised the acquisition process and emerged as the majority shareholder in Axis after the signing of concluding documents with Saudi Telecom Company (STC) and after securing the approvals from various parties.

The US$865 million acquisition was financed through secured loans from share holders (US$500 million) and from third parties namely UOB Bank, Bank of Tokyo-Mitsubishi and DBS Bank (US$365 million).

“We are grateful to have reached the final phase of the acquisition with AXIS.

“Consolidation in the telecommunications sector has become a necessity to ensure a healthy and sustainable industry,” said XL president director Hasnul Suhaimi.

He added that XL will continue its efforts in finalising the XL-Axis merger after the acquisition, and said that the merger will be finalised soon.

The group said it expects to provide better services to its customers in Indonesia through the merger and acquisition.

“As in all of our current investments, we remain committed to Indonesia over the long term period.

“With the completion of the acquisition, we now look forward to the successful integration between XL and Axis,” said Datuk Sri Jamaludin Ibrahim, president and group chief executive officer of Axiata.