XL to mount USD300m rights issue in December

16 Oct 2009

Indonesia’s third largest mobile operator by subscribers PT Excelcomindo Pratama (XL) has revealed plans to launch a rights offer in December, as part of plans to raise IDR2.836 trillion (USD304.1 million) for debt repayments. In its prospectus, a copy of which was published in the Bisnis Indonesia newspaper, XL said it plans to offer shareholders one new share for every five existing shares priced at IDR2,000 per share – a roughly 54% premium on yesterday’s closing share price. The cellco, whose majority shareholders are Malaysia’s Axiata Group (formerly Telkom Malaysia International) and Emirates Telecommunications Corp International Indonesia, will hold an extraordinary shareholders meeting on 16 November for the issuance and set an allotment date for the new shares on 10 December.

According to TeleGeography’s GlobalComms Database, XL announced a 12% rise in net profit in the first half of 2009, driven by strong growth in its pre-paid customer base which rose 9% from 19.9 million in the first quarter to 21.8 million as at 30 June. Communication traffic also leapt 113% while messaging traffic shot up 170%, it said. In a press release, XL said earnings before tax, cost, depreciation and amortisation, or EBITDA, jumped 31% from the first quarter, while net profit rose to IDR706 billion from a year earlier. The total number of customers stood at 24.7 million by 30 June 2009.

Indonesia, XL Axiata