Jakarta Telekom XL Axiata Axis Capital Group Indonesia
XL Completes Takeover of Axis
Jakarta. Telecommunications company XL Axiata concluded its acquisition of Axis Telekom Indonesia on Wednesday, bolstering Indonesia’s second-largest service provider.
“The acquisition of Axis by XL will create a healthier telecommunications industry…,” XL president director Hasnul Suhaimi said on Thursday.
XL acquired a 95 percent stake in Axis, which it bought from Saudi Telecom Company for $865 million. It secured $865 million in loans from XL shareholders, Bank UOB, Bank of Tokyo-Mitsubishi and Bank DBS to help finance the takeover.
XL, which counted 60.5 million subscribers as of last year, has secured all the requirements from the relevant authorities to purchase Axis. The latest approval came from Indonesia’s Antimonopoly Commission (KPPU).
Hasnul recently assured that the merger will not result in any monopolistic business practices, since the new company would control roughly 21 percent of Indonesia’s telecommunications market.
“The figure is still far below the market share of other operators in Indonesia,” Hasnul said.
Indonesia’s mobile phone sector is dominated by three operators: Telkomsel, the nation’s largest provider, XL Axiata and Indosat.