STC ups Axis stake to 80%

29 Mar 2011

Saudi Telecom Company (STC) has increased its holding in Indonesian mobile group PT Natrindo Telepon Seluler (NTS) from 51.0% to 80.1%, through a deal with joint venture partner Maxis Communications. As a result of the definitive agreement, the pair have decided to restructure their joint investment in NTS, which trades under the Axis banner, with STC assuming full management control. By contrast, Maxis’ equity interest in the Indonesian cellco will drop to 14.9% from 44.0%, while PT Harmersha Investindo (PTHI) will continue to hold 5% in the company. STC is planning to invest USD371 million in Axis over the next two years and will act as a facilitator as the unit looks to secure external funding in the coming five years to meet its funding requirements. The transaction is however, subject to regulatory approval, but expected to complete in April.

Indonesia, Saudi Telecom Company (stc)