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Axiata subsidiary sells 5% stake in XL Axiata for RM423.5 million

Axiata subsidiary sells 5% stake in XL Axiata for RM423.5 million

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Axiata Group's indirect wholly-owned subsidiary, Axiata Investments, is disposing of 5% of its equity interest in XL Axiata amounting to about RM423.5 million. According to the statement, the 5% stake, which is approximately equivalent to 533,409,349 ordinary shares, will be divested to Ferrymount Investments, Procap Partners and Tiga Investments. Prior to this, Axiata Investments held 66.5% equity interest in XL, as listed on the Indonesia Stock Exchange.

Axiata said that the disposal of shares, which provides XL with access to the business partnerships of Procap and Tiga Investments amongst others, will place XL in a better operational footing in the near future. At the same time, Procap's and Tiga Investment's linkages to the Indonesia digital ecosystem would enable XL to actively engage and further develop its digital and value-added services to offer its current base of customers, thereby improving the user experience. Both of these investment firms would be acting as the guarantors for this sale. The deal is expected to be completed by October 2021. 

Axiata’s investment in XL commenced when TM International, a wholly-owned investment arm of Telekom Malaysia, acquired a 23.1% stake in Excelcomindo Pratama on 13 January 2005. Subsequent to the listing of Excelcomindo Pratama in September 2005 and through several corporate exercises that ensued, TMI increased its stake in Excelcomindo Pratama to 86.5% in December 2009. Following the completion of the restructuring of TM’s mobile businesses, TMI was demerged from TM in 2008 to grow the mobile businesses as a separate entity. In 2009, TMI changed its name to its present form of Axiata Group and Excelcomindo Pratama adopted its new identity, XL Axiata.

In April 2010, Axiata placed out 19.8% of its shares in XL thereby reducing its stake to 66.7%. Following the issuance of new shares to the employees of XL pursuant to a share incentive scheme, Axiata’s shareholding in XL has been reduced to the current level of 66.5%. Meanwhile in Indonesia, XL reappointed dentsu Indonesia to handle media duties and named Idenya Flux as its digital agency.

Photo courtesy: 123RF

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Related articles:
XL Axiata hands digital duties to Idenya Flux
XL Axiata reappoints dentsu for media duties
XL Axiata dials up brand building efforts with M&C Saatchi as agency partner


 

 

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