Etisalat to Sell its Minority Stake in Indonesia's XL Axiata
Published on: 12th Sep 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
In a short statement UAE based Etisalat has announced a plan to sell down its stake in the Indonesian mobile network XL Axiata through a placement of the shares onto the stock market.
Etisalat currently owns a 13.3% stake in the Indonesian company, which it bought in 2007 for USD440 million. It is estimated to be worth around US$500 million now, which is less than the $600-700 million it was thought to be worth earlier this year when rumours of the sale first emerged.
XL Axiata is 84% owned by Malaysia's Axiata Group, with the remainder held by Etisalat, and a tiny amount floated on the stock market. The sale would see the floatation level rise as Etisalat releases its shares on to the stock market.
It had been earlier reported that Etisalat was considering the sale following a break down of relations with the majority shareholder.
Etisalat did not elaborate on its reasons in its short statement to the Abu Dhabi Securities Exchange.