KUALA LUMPUR: Axiata Group Bhd's Indonesian subsidiary, PT XL Axiata Tbk (XL) has completed its acquisition of PT Axis Telekom Indonesia (Axis).
Axiata said on Thursday Axis was valued at 100% enterprise value of US$865mil, on a cash free and debt free basis.
It added the deal was marked with the signing of concluding documents for the transaction between XL and Saudi Telecom Company.
The acquisition was reached after XL secured the unanimous consent required for the conditional sales purchase agreement from the Ministry of Communication and Information Technology; approval from XL shareholders.
It also received an effective statement from the Financial Services Authority (OJK) and approvals from the other regulators.
XL president director Hasnul Suhaimi said with the conclusion of this acquisition, XL has become a majority shareholder in Axis.
"Consolidation in the telecommunications sector has become a necessity to ensure a healthy and sustainable industry," he said
Hasnul added that following the acquisition, XL would continue several initiatives to finalise the merger.
"XL-Axis represents an essential and strategic momentum to support and realise government programmes to bolster the telecommunications industry," he added.
To finance the US$865mil acquisition, XL secured loans from shareholders totaling US$500mil while the remaining US$365mil was secured from UOB Bank, Bank of Tokyo-Mitsubishi and DBS Bank.
