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Etisalat Looking to Sell Minority Stake in Indonesian Network

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UAE based Etisalat is reported to be considering the sale of its 13.3% stake in the Indonesian mobile network, XL Axiata. The sale would raise between US $600 to US $700 million.

Etisalat is said to be considering the sale following a break down of relations with the majority shareholder, Malaysia's Axiata Group.

"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," a source -- who declined to be identified because of the sensitivity of the matter -- told the Reuters news agency.

Etisalat paid USD40 million for the stake in XL Axiata in 2007.

The mobile network operator is 84% owned by Axiata Group, with the remainder held by Etisalat, and a tiny amount floated on the stock market.

Etisalat has hired JPMorgan and Morgan Stanley to handle the sale, which may launch via an equity placement, the sources said.

On the web: Reuters

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Tags: etisalat   xl axiata  axiata group  Indonesia