XL appoints underwriters for public share sale

15 Aug 2008

Indonesia’s third largest mobile operator by subscribers Excelcomindo Pratama (XL) has appointed three investment groups to act as underwriters for its upcoming public share offer at the end of 2008. According to reports from The Jakarta Post, the three companies – JP Morgan, Merril Lynch and Mandiri Sekuritas – will help XL place a minimum 10% of its stock with members of the public in the fourth quarter of the year through a secondary offering. TeleGeography’s GlobalComms database writes that XL is owned by Telekom Malaysia’s Indocel Holding (83.79%), Emirates Telecommunications Corp (Etisalat, 15.97%) and the general public (0.2%). The company, which claimed 22.9 million mobile subscribers at 30 June, declined to divulge how much it expects to make from the sale.

In a related development, XL has confirmed it is selling 7,000 of its base transmission stations (BTSs), as it looks to focus more on its telecoms business. A spokesman for the company told the paper ‘We have shortlisted the buyers, we hope we can get results in the next one or two months, as we’re still in negotiation on the prices and requirements’. In future, XL intends only to build a small number of new cell sites, and will mainly lease BTSs to fulfil its requirements. The cellco expects to raise USD763 million from the sale of the base stations, which will be used for investment and debt-refinancing. The operator has reportedly set aside USD327 million over the next two years to build or lease 3,000 BTSs; it currently owns 8,000.

Indonesia, XL Axiata