KUALA LUMPUR: Axiata Group Bhd is proposing to offer up to 20% equity interest in its 86.5%-owned Indonesian subsidiary PT XL Axiata Tbk (XL) via a book-building exercise to enable investors to participate in its growth directly.

In a statement yesterday, Axiata said the exercise would be carried out via an international private placement of secondary shares by Axiata for up to 20% of XL’s issued share capital.

Axiata holds its stake in XL via Indocel Holding Sdn Bhd, while the remaining interests are held by Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd, a wholly owned subsidiary of Etisalat at 13.3% and the public at 0.2%.

The final offering price and size would be determined after the completion of the book-building exercise, it said. The offering is expected to be completed by April.

Axiata said Goldman Sachs had been appointed as sole global coordinator and along with CIMB Investment Bank Bhd are acting as joint bookrunners. Goldman Sachs, CIMB Investment Bank, PT Mandiri Sekuritas are the joint lead managers.

“In the financial year ended 2009, XL made tremendous progress both operationally and financially through strong execution of a focused and well-developed strategy.

“On the back of this momentum, and with the continued macro recovery driving capital markets, we believe that this is the right time to conduct this offering, enabling investors to participate in XL’s growth story,” said Axiata president and group CEO Datuk Seri Jamaludin Ibrahim.

“As the majority shareholder of XL, Axiata believes an increase in the free float is positive for XL’s long term corporate development as one of Indonesia’s flagship companies,” he said.

XL president director Hasnul Suhaimi said the exercise would provide further support to XL to grow as one of Indonesia’s largest listed companies.

Axiata is currently evaluating how the proceeds raised from the offering would be used in the group’s businesses and general corporate purposes.


This article appeared in The Edge Financial Daily, March 12, 2010.