Jakarta, March 20, 2014 – PT XL Axiata Tbk (XL) today announces the company has completed its acquisition of PT Axis Telekom Indonesia (AXIS) for US$865 million. The deal was marked with the signing of concluding documents for the transaction on March 19, 2014 between XL and STC, allowing the former to officially finalize the acquisition process and become the majority shareholder in AXIS.
The acquisition was reached after XL secured the unanimous consent required for the Conditional Sales Purchase Agreement (CSPA), which includes:
Approval from the Ministry of Communication and Information Technology
Approval from XL shareholders through General Meeting of Shareholders (EGMS)
Effective statement from the Financial Services Authority (OJK)
Statement of No Objection from the Indonesia Stock Exchange
Approval from the Indonesia Investment Coordinating Board (BKPM) toward the acquisition
Approval from the Business Competition Supervisory Commission (KPPU) towards XL – AXIS the merger and acquisition plan
XL President Director Hasnul Suhaimi said, “We are grateful to have reached the final phase of the acquisition with AXIS. With the conclusion of this acquisition, XL has now become a majority shareholder in AXIS. We thank and offer the utmost appreciation for the support of several parties, particularly regulators, shareholders as well as XL and AXIS consumers, all of which made the acquisition possible. Consolidation in the telecommunications sector has become a necessity to ensure a healthy and sustainable industry.”
Hasnul added that following the acquisition, XL will continue several initiatives toward finalizing the merger in acordance with applicable rules and regulations. XL-AXIS represents an essential and strategic momentum to support and realize government programs to bolster the telecommunications industry. Through a healthy and strong telecommunications industry, tremendous benefits will be enjoyed by the public as consumers, as well as other stakeholders such as businesses and those in telecommunications and the government.
To finance the US$865 million acquisition, XL secured loan from shareholders in the amount of US$500 million. The remaining US$365 million was secured from third parties, namely UOB Bank, Bank of Tokyo-Mitsubishi and DBS Bank.
Through its acquisition and merger with AXIS, XL is expected able to provide better and more comprehensive services to a greater number of customers throughout Indonesia. Meanwhile, this consolidation also supports the government’s aim to realize the national broadband program. From an economic perspective, the XL-AXIS merger will boost state revenue through higher non-tax state income in the telecommunications sector.
“XL’s effort in proceeding with the merger and acquisition with AXIS will support a healthier telecommunications industry which will create a strong multiplier effect for the development of the national economy. ” added Hasnul.
This acquisition and merger will expand both the number of XL customers and the on-net community. This will also improve service quality and better network coverage, as well as wider availability of product and customer services in the market. XL is confident that customers will enjoy greater benefits once the merger has been realized.
Merrill Lynch (Singapore) Pte. Ltd. is acting as exclusive financial adviser to XL on this transaction.
About XL
PT XL Axiata Tbk. is one of the major cellular providers in Indonesia. PT XL Axiata Tbk. is 66.5% owned by Axiata Group Berhad through Axiata Investments (Indonesia) Sdn Bhd and public 33.5%, and is part of Axiata Group with Robi (Bangladesh),Smart (Cambodia), Idea (India), Celcom (Malaysia), M1 (Singapore), SIM (Thailand) and Dialog (Sri Lanka).
