Excelcomindo rights issue worth US$300 million

PT Excelcomindo Pratama Tbk (XL) plans to have rights issue worth US$300 million.
The major shareholders of Excelcomindo, the Axiata Group Berhad and Emirates Telecommunications Corporation International Indonesia Ltd. (Etisalat), agreed to use their rights in the corporate action here.
President Director of Excelcomindo Hasnul Suhaimi said the corporate action will cut down debt and mend the corporate capital structure.
"With the rights issue, we could maintain our flexibility to continue investment. Our performance is very well with the mounting revenue and EBITDA of almost 50 percent in 2008," said Hasnul yesterday.
He said the company responded positively to the major Excelcomindo shareholders approval and commitment to perform US$300 million rights issue.
"Excelcomindo will compete more for the future and keep prop up faster growth which enables us to share dividend to the shareholders in the future," he added.
President Director of the Indonesia Stock Exchange (IDX) Ito Warsito said the Excelcomindo shareholders could use the momentum here to increase the floating stocks.
"The major shareholders should have been better provide chances to public to participate in the rights issue. Don't block the rights issue execution so the public shares remain less in number."
He admitted the management and shareholders of Excelcomindo have not submit the public shares rise scheme to the new IDX management.
"Dealing with the rights issue, they surely submit documents to Bapepam-LK," he said.
Based on IDX website data, Excelcomindo shares owned by pubic as per June 30 were very less in number or 0.24 percent. Meanwhile, the other 83.79 percent shares were owned by Indocel Holding Sdn Bhd and 15.97 percent by Etisalat International Indonesia Ltd.
IDX has so far called for Excelcomindo management to increase public shares but it has not been materialized. With the less number of floating shares, the cellular operator shares has become illiquid.