XL to launch USD300m rights issue

5 Aug 2009

Indonesia’s third largest mobile operator by subscribers Excelcomindo (XL) has revealed plans to launch a rights issue later this year through which it hopes to raise USD300 million, XL president Hasnul Suhaimi is quoted as saying. The operator, whose majority shareholders are Malaysia’s Axiata Group (formerly Telkom Malaysia International) and Emirates Telecommunications Corp International Indonesia, have reportedly sanctioned the plan which will take place in the fourth quarter of the year. It is understood the rights issue size will consist of equity and mandatory convertible notes. The parent hopes the recapitalisation exercise will help XL improve service quality, as well as increase network capacity and coverage, and also allow it to repay debt.

Indonesia, XL Axiata