Etisalat looking to offload stake in Indonesia’s XL Axiata, sources say

13 Mar 2012

Reuters quotes unnamed sources as saying that UAE-based telecoms group Etisalat is planning to sell its 13.29% equity stake in Indonesia’s third largest mobile operator by subscribers, PT XL Axiata, and could raise up to USD700 million in the process. People with ‘direct knowledge of the matter’ suggest Etisalat has been considering the sale for several months, after failing to expand its working partnership with XL Axiata’s majority shareholder, Axiata Group Malaysia. ‘Etisalat thinks it hasn’t been treated well in this deal … the reality is that the relationship soured a bit with the new management of Axiata,’ said one source, who declined to be identified because of the commercial sensitivity involved. ‘They have never been able to find a way to work together in four years,’ the person added. It is rumoured that the UAE firm has contracted JPMorgan and Morgan Stanley to handle the sale, which may launch via an equity placement. None of the companies involved were available for comment.

Indonesia, United Arab Emirates, Axiata, Etisalat UAE, XL Axiata