Etisalat looking to sell majority of XL Axiata stake - report - Mobile World Live

Etisalat looking to sell majority of XL Axiata stake – report

13 SEP 2012

Middle East-based operator group Etisalat is hoping to raise up to US$502 million by selling the majority of its stake in Indonesian operator PT XL Axiata, reports Reuters.

Etisalat is offering up to 775 million shares at between IDR6,100 (US$0.64) and IDR6,300 per share, a discount of 9 percent on Wednesday’s closing price of IDR6,700. The sale would leave Etisalat with a 4.2 percent stake in XL Axiata.

Etisalat invested US$440 million in Indonesia’s number-three operator nearly five years ago but a sale of the stake has been expected with Etisalat failing to expand its partnership with Malaysia’s Axiata Group, XL Axiata’s major shareholder.

Head of equity fund Sucorinvest Asset Management in Jakarta, Jemmy Paul, told Reuters it is hard for Etisalat to expand its business if it isn’t the controlling shareholder of XL Axiata and so divesting its interest at a good price is a better option.

If it goes ahead, the sale will be the biggest block offering in Indonesia since December 2010.

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Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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