Shares in Indonesian telecoms operator XL Axiata (formerly PT Excelcomindo Pratama) fell 1.41% to IDR3,500 (USD0.38) on the local bourse in the wake of an announcement by the company’s majority shareholder that it plans to sell 20% of the firm through a share placement. Axiata, the international arm of Telkom Malaysia, owns 86.5% of XL Axiata, while Emirates Telecommunications (Etisalat), owns a further 13.3% stake, and 0.2% is in free float. Upon completion of the transaction Axiata’s equity interest will fall to 66.5%, but publicly traded shares will constitute 20.2% of the company it said, theoretically making the group ‘more accessible’ to institutional investors. Credit Suisse is quoted as saying the placement could generate as much as USD51.3 million.
According to TeleGeography’s GlobalComms Database, Axiata booked revenues of IDR13.8 trillion (USD1.5 billion) in full year 2009, up 13.1% compared with IDR12.2 trillion in 2008, driven by strong subscriber growth. The cellco’s subscriber base increased by 21% year-on-year to 31.4 million, of which 31.1 million are classed as ‘revenue generating’ by the company.