Asiata divests 18% XL for Rp5 trillion

Axiata Group Berhad has accomplished the book building for placement of 18% shares in PT XL Axiata Tbk for Rp3300 per share. Axiata would bag Rp5 trillion or US$550 million from the divestment.

The placement, arranged by Goldman Sachs, CIMB Investment Bank Berhad, PT Mandiri Sekuritas, JP Morgan Securities Ltd, and Morgan Stanley Services Ltd, is oversubscribed 3-4 times. Axiata Berhad currently owns 86.5% shares in XL Axiata, wit Etisalat controls 13.3%, and public 0.2%.

The offering could also be upsized by an additional 153,144,000 XL Shares (representing 1.8% equity stake) under the option granted to Goldman Sachs (Singapore) Pte. on behalf of the initial purchasers for the Offering, in connection with price stabilization initiatives.

At Rp3300/share, XL Axiata is valued Rp28 trillion for 100% shares, right below Indosat (Rp31.24 trillion). XL has gained 71% so far this year, while Indosat gained 21.7%.

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