XL Axiata Axis Capital Group
XL Axiata Borrows $200m to Acquire Axis
Jakarta Telekom XL Axiata Axis Capital Group Indonesia . XL Axiata, the country’s second-largest telecommunication company, has secured $200 million in loans from two foreign banks to help it finance its acquisition of Axis Telekom.
The company has signed loan agreements with United Overseas Bank and Bank of Tokyo-Mitsubishi UFJ on Wednesday, XL Axiata said in a statement to the Indonesia Stock Exchange (IDX) on Thursday.
Each bank provided XL Axiata with a $100 million loan, which will mature in three years. The company did not disclose the interest rates set for the loans.
“Both facilities will be used to finance the takeover of Axis Telekom Indonesia,” the company said in the statement.
XL will acquire a 95 percent stake in Axis Telekom from Saudi Telecom Company for $865 million. It has secured a $500 million loan from Malaysian parent Axiata early this week. This loan will also mature in three years and it has an interest rate of 2.41 percent.
XL Axiata, which had 60.5 million phone subscribers as of last year, announced on Monday that it has gained approval from Indonesia’s antimonopoly commission (KPPU) for the acquisition of Axis. This was the final approval the company needed to execute the deal.
“Hopefully the Axis transaction can be concluded as soon as possible. XL and Axis are now dealing with administrative matters,” XL Axiata president director Hasul Suhaimi told the Jakarta Globe on Friday.
Shares of XL Axiata fell 0.1 percent to Rp 4,405 on Friday, while the main stock index gained 3.2 percent for the day.