Axiata announces XL share placement

Nicole McCormick
12 Mar 2010
00:00
News
Daily News

Axiata has announced plans to sell 20% of its Indonesian subsidiary, XL Axiata, via a share placement.

Axiata, Telekom Malaysia’s international arm, owns 86.5% of XL, with Emirates Telecommunications (Etisalat), owning a 13.3% stake, leaving a free float of just 0.2%.

After the placement, Axiata will own 66.5% of XL but the free float will increase to 20.2%, making XL more accessible to institutional investors.

Axiata hopes to complete the share placement by April.

The selling price will be determined after book building.

“The cash raised from the share placement could potentially amount to RM1.7 billion ($51.3m) pre-expenses assuming a 5-10% discount to XL’s TP of Rp 3300 ($0.36),” said Credit Suisse.

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