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$865-million telco deal in Indonesia completed
Publication Date : 20-03-2014
Telecommunication company XL Axiata has completed its payment to acquire Axis Telekom Indonesia with a US$865-million investment.
The deal was made after XL and Saudi Telecom Company (STC), previously the major shareholders in Axis, signed the transaction document.
Kompas.com reported on Thursday that the acquisition deal was signed at the XL headquarters in Menara Prima, Kuningan, South Jakarta.
XL Axiata's acquisition of Axis Telekom Indonesia makes it the company's major shareholder.
XL Axiata received a $500-million loan from its holding firm, Axiata of Malaysia, and the rest was from three banking institutions, such as UOB, the Bank of Tokyo Mitsubishi and DBS.
Hasnul Suhaimi, president and CEO of XL Axiata, said his team would finish a series of processes to finalize the acquisition and merger in line the existing regulations.
"XL efforts in acquiring and merging with Axis will support and produce a healthy telecommunication industry and create significant multiple effects for the nation's economy," Hasnul said in a release to KompasTekno.
The company announced its plan to acquire Axis in September 2013. The first regulator who gave the green light to the company was the Communications and Information Ministry in December last year. It then received the approval of its shareholders, the Financial Services Authority , the Indonesia Stock Exchange , the Investment Coordinating Board and the Business Competition Supervisory Commission (KPPU) on March 10 this year.