The Jakarta Post
Indonesia's third-largest telecommunication firm PT XL Axiata has officially merged with PT Axis Telekom Indonesia, which provides Axis phone cards, in a US$865 million deal.
'Consolidation in the telecommunication industry has become a necessity to ensure a healthy and sustainable telecommunication industry,' XL Axiata president director Hasnul Suhaimi said in a press statement as reported by Kontan on Tuesday following the final signing of legal documents required for this deal.
Hasnul said the merger would create a telecommunication giant that would serve 65 million customers across Indonesia.
XL Axiata funded the acquisition of Axis' stake using $500 million from parent company Malaysia's Axiata Group Berhad, while the remaining $365 million will come from bank loans and tower sales.
XL previously secured approval from the Communications and Information Ministry, the Coordinating Investment Board (BKPM), the Indonesia Stock Exchange (IDX), the Financial Services Authority (OJK), shareholders and lastly the Business Competition Supervisory Commission (KPPU), to realize this corporate action.
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