Axiata sells 5% stake in Indonesia-listed XL Axiata to Ferrymount for RM423.5m


AXIATA Group Bhd’s indirect wholly-owned subsidiary Axiata Investments (Indonesia) Sdn Bhd (AIISB) is selling of 5% stake in its Indonesia-listed PT XL Axiata Tbk to Ferrymount Investments Ltd (FIL) for 1.44 trillion rupiah (RM423.5 million) or 2,700 rupiah (79 sen) per share.

In a filing to Bursa Malaysia today the company said AIISB has entered into a sale and purchase agreement with Ferrymount Investments, Procap Partners Ltd and Tiga Investments Pte Ltd for the disposal of 533.4 mil ordinary shares in XL.

AIISB holds 66.5% equity interest in XL, which is listed on the Indonesia Stock Exchange.

Procap and Tiga Investments, acting as guarantors will unconditionally and irrevocably guarantee the discharge by the buyer of its obligations under the SPA.

“The Disposal Consideration of IDR2,700 (equivalent to RM0.79) represents a discount of approximately 5% to the one-month volume weighted average market price (VWAP) of XL Shares up to and including 23 September 2021 of IDR2,847 (equivalent to approximately RM 0.84),” noted Axiata.

The completion of the SPA will take place 1 month from the date of the SPA.

“The Disposal facilitates the timely introduction of Indonesia-focused investors in XL who acknowledge the value and opportunities in the domestic telecommunications sector.

“Procap and Tiga Investments have extensive knowledge, experience, business partnerships, and investments in Indonesia, as well as in global capital markets. Axiata is of the view that the Disposal which provides XL with access to the aforesaid business partnerships of Procap and Tiga Investments amongst others, will place XL in a better operational footing in the near future.” said Axiata in the bourse filing.

The group further noted that Procap’s and Tiga Investment’s linkages to the Indonesian digital ecosystem will enable XL to actively engage and further develop its digital and value-added services to offer its current base of about 58 million customers, thereby improving the user experience.

The disposal will not have any material effect on the net assets (NA) per share, gearing or earnings per share of Axiata.

The exercise is expected to be completed in October 2021.