Saudi Telecom Co. (STC) said it had reached an agreement to sell its subsidiary in Indonesia AXIS to XL which is a major operator in the Indonesian market.
STC holds an 80.10 percent stake directly and a 3.725 percent stake indirectly in AXIS.
The transaction values AXIS at an enterprise value of $865 million equivalent to SR3,243 million for 100 percent of the company on a cash free and debt free basis, according to an STC statement posted on the Tadawul website.
As part of the transaction, AXIS debts with its lenders and vendors will be settled.
As announced previously on July 21 2013 the principle of the transaction was approved by the board of directors of STC, which authorized STC’s management to engage in negotiations with the prospective buyer senior lenders and other creditors of AXIS.
As the board of directors authorized the finalization of the negotiation and the conclusion of the transaction.
These negotiations have been successfully concluded, STC said.
The completion of the transaction remains subject to the applicable Indonesian regulatory approvals as well as the approval of XL shareholders at its extraordinary general meeting.
STC reclassified its investment in AXIS as a held-for-sale asset as at June 30.
According to this classification, the group measured the net assets related to the investment at fair value and recognized a realized loss of SR705 million during the second quarter of 2013.
The final impact on STC’s financials will be determined at the closing of the transaction. This will be announced separately, according to the statement.
Saudi Telecom sells Indonesian subsidiary to AXIS
