Axiata to buy Saudi Telecom’s Indonesia unit

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axis3Malaysia’s telecom giant Axiata Group Bhd will buy Saudi Telecom’s Indonesian unit in a bid to boost its presence in Southeast Asia’s largest economy.

The sale of a majority stake in PT Axis Telekom Indonesia (Axis) is also likely to help Saudi Telecom end a tussle with global banks over a $1.2 billion loan tied to the Indonesian firm, Reuters reported.

Axiata told the Malaysian stock exchange on September 26 the purchase, which is being handled by its Indonesian telecoms subsidiary XL Axiata Tbk, will unlock additional spectrum capacity. It did not disclose the value of the deal, but said Axis has an enterprise value of $865 million.

The deal supports the Indonesian government’s push to consolidate the telecoms industry in the country, where several players, including Axis and PT Bakrie Telecom Tbk, have struggled to pay off debts and maintain positive margins.

The acquisition now leaves around nine mobile operators in a market where mobile penetration reached 115 per cent by end-2012.

Saudi Telecom, which had an 84 per cent stake in Axis, said in a statement that it had recorded a realised loss of 705 million Saudi riyals ($187.99 million) for its Indonesian investment in the second quarter of 2013.

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Reading Time: 1 minute

Malaysia’s telecom giant Axiata Group Bhd will buy Saudi Telecom’s Indonesian unit in a bid to boost its presence in Southeast Asia’s largest economy.

Reading Time: 1 minute

axis3Malaysia’s telecom giant Axiata Group Bhd will buy Saudi Telecom’s Indonesian unit in a bid to boost its presence in Southeast Asia’s largest economy.

The sale of a majority stake in PT Axis Telekom Indonesia (Axis) is also likely to help Saudi Telecom end a tussle with global banks over a $1.2 billion loan tied to the Indonesian firm, Reuters reported.

Axiata told the Malaysian stock exchange on September 26 the purchase, which is being handled by its Indonesian telecoms subsidiary XL Axiata Tbk, will unlock additional spectrum capacity. It did not disclose the value of the deal, but said Axis has an enterprise value of $865 million.

The deal supports the Indonesian government’s push to consolidate the telecoms industry in the country, where several players, including Axis and PT Bakrie Telecom Tbk, have struggled to pay off debts and maintain positive margins.

The acquisition now leaves around nine mobile operators in a market where mobile penetration reached 115 per cent by end-2012.

Saudi Telecom, which had an 84 per cent stake in Axis, said in a statement that it had recorded a realised loss of 705 million Saudi riyals ($187.99 million) for its Indonesian investment in the second quarter of 2013.

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