Axiata Converts RM2.8 Billion Conventional Term Loans to Islamic Financing
Kuala Lumpur 18th November 2009, Axiata Group Berhad ("Axiata") is pleased to announce that the shareholders of PT Excelcomindo Pratama Tbk ("XL"), an 83.8% subsidiary of Axiata via its wholly owned subsidiary, Indocel Holding Sdn Bhd, had at the Extraordinary General Meeting of Shareholders ("EGMS") held on 16 November 2009, inter-alia, approved the following:-
- Proposed Rights Issue of approximately USD300.0 million by way of issuance by XL of 1,418 million new Ordinary shares of IDR100 each ("Ordinary Share") on the basis of 1 Rights Share for every 5 existing Ordinary Shares at an issue price of IDR2,000 per share;
- Proposed introduction of additional business activities, namely payment and money remittance service through XL's telecommunication network;
- Proposed Change of Name of XL from "PT. Excelcomindo Pratama Tbk." to "PT. XL Axiata Tbk.", which will be effective upon approval from the Ministry of Law and Human Rights of the Republic of Indonesia;
- Withdrawal and revocation of the proposed sale of 7,000 telecommunication towers along with related infrastructure and facilities ("Proposed Tower Sale Plan"). The Proposed Tower Sale Plan was earlier approved by the shareholders of XL at the EGMS held on 3 September 2008, The withdrawal and revocation of the Proposed Tower Sale Plan is after taking into consideration the failure of the same after a period of 1 year and XL will apply for further approval from its shareholder for the next tower sale plan; and
- The resignation of Mr Gita Irawan Wirjawan as Member of the Board of Commissioners.
Axiata is one of the largest Asian telecommunication companies, focused in high growth low penetration emerging markets. Axiata has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India and Indonesia are amongst the fastest growing markets in the world. In addition, the Malaysian grown holding company has stakes in non mobile telecommunication operations in Thailand and Pakistan.
The Group's mobile subsidiaries and associates operate under the brand name ‘Celcom' in Malaysia, ‘XL' in Indonesia, ‘Dialog' in Sri Lanka, ‘AKTEL' in Bangladesh, ‘HELLO' in Cambodia and ‘Idea' in India, ‘M1' in Singapore and ‘MTCE' in Iran (Esfahan).
As of December 2008, The Group's, including its subsidiaries and associates, has over 90 million mobile subscribers in Asia. The Group revenue for 2008 was RM11.3 billion. The Group provides employment to over 25,000 people across Asia. Axiata's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and people, uniting them towards a single goal: Advancing Asia.
Axiata was awarded the Frost & Sullivan 2009 Asia Pacific ICT Award for Best Telecom Group.
XL is one of the major cellular providers in Indonesia. XL owns an extensive fiber optic backbone network. Started its commercial operations in October 1996, XL's business consists of Consumer Solutions as triple band (900/1800/1900) cellular network and service provider and Business Solutions as corporate service provider. On 21 September 2006, XL launched XL 3G, the first fastest and widest cellular telecommunication services based on 3G technology. XL majority owned by Axiata Group Berhad through Indocel Holding Sdn Bhd (83,8%) and Emirates Telecommunications Corporation (Etisalat) through Etisalat International Indonesia Ltd (16%), and public (0,2%). As part of Axiata Group with Aktel (Bangladesh), HELLO (Cambodia), Idea (India), MTCE (Iran), Celcom (Malaysia), Multinet (Pakistan), M1 (Singapore), Samart (Thailand) and Dialog (Sri Lanka), towards advancing Asia.