Axiata Group Bhd., Malaysia's second-biggest mobile-phone operator, plans to sell as much as 20 percent of its Indonesian unit, PT XL Axiata Tbk, formerly known as PT Excelcomindo Pratama Tbk to investors.
The sale will be done via an international private placement and expected to be completed by April.
Last year, XL Axiata has announced that it has completed its IDR 2.8 trillion rights issue. The number of new shares issued after the completion of rights issue is 1.418 billion, bringing to total number of outstanding shares to 8.508 billion. The proceeds will be fully used to repay debt.
PT Pemeringkat Efek Indonesia today upgraded its ratings to idAA- from idA+ for XL Axiata,and the company’s bond II/2007 of IDR1.5 trillion due 2012.
The outlook of the ratings is stable. The ratings reflect the company’s improving financial profile mostly supported by more conservative financial leverage, stable market position, and the strong creditworthiness of its majority shareholder.
However, the ratings are constrained by the intense competition within the wireless sector. Since it started operating in October 1996, XL Axiata has consistently been able to hold its position as the 3rd largest cellular operator in Indonesia after Telkomsel and Indosat. At the end of 2009, the company’s shareholders consisted of Indocel Holding Sdn. Bhd., part of Axiata Group Berhad, formerly known as Telekom Malaysia International Bhd. (86.5%), Emirates Telecommunications Corporation (Etisalat) International Indonesia Ltd. (13.3%), and public (0.2%).
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