ENTRY BY PT XL AXIATA TBK INTO A DEED OF ESTABLISHMENT WITH PT INDOSAT TBK
For purposes of this announcement, “IDR” refers to Indonesia Rupiah and “RM” refers to Ringgit Malaysia. Exchange rates used for conversion to RM are IDR3,281:RM1 based on the middle rates as at 11.30 a.m. on 10 May 2016 as published by Bank Negara Malaysia.
Following the announcement by PT XL Axiata Tbk (“XL”) to the Indonesia Stock Exchange today, we are pleased to announce that XL, a subsidiary of Axiata Group Berhad (“Axiata”), had on 9 May entered into a Deed of Establishment (“Deed”) with PT Indosat Tbk (“Indosat Ooreedoo”) for the establishment of a joint venture; PT One Indonesia Synergy Tbk (“JVCo”).
Information on XL
XL is 66.43% owned by Axiata through Axiata Investments (Indonesia) Sdn Bhd. XL became a public company and listed its shares on the Indonesia Stock Exchange (formerly known as Jakarta Stock Exchange) in 2005 under the name PT Excelcomindo Pratama Tbk, before assuming its present name in 2009. Operating commercially since October 1996, XL is currently a cellular service provider in Indonesia currently serving 42.5 million subscribers.
Information on Indosat Ooreedoo
Indosat Ooredoo is member of Ooredoo Group (“Ooredoo”), which 65% of its shares indirectly owned by the Ooredoo. Ooredoo, formerly known as Qatar Telecommunications, is an international communications company delivering mobile, fixed, broadband internet and corporate managed services tailored to the needs of consumers and businesses across markets in the Middle East, North Africa and Southeast Asia.
Key Terms of the Deed
Under the terms of the Deed, XL has subscribed 1,251 ordinary shares of IDR1,000,000.00 (“Subscription Shares”) totalling IDR1,251,000,000.00 (equivalent to RM381,286.00) representing 50% of the total issued and paid-up share capital of the JVCo with the remaining held by Indosat Ooredoo.
The purpose of the joint venture is among others to anticipate that the joint venture company will provide consultancy services in future network collaboration. The transaction parties are in the process of jointly exploring the possibility of entering into such a collaboration.
The subscription by XL of the Subscription Shares does not have any effect on the issued and paid-up share capital of Axiata and is not expected to have any material effect on the earnings, gearings and net assets of Axiata Group for the financial year ending 31 December 2016.
The subscription by XL of its Subscription Shares was funded through internally generated funds.
Approval of Shareholders and Authorities
The establishment of the JVCo is not subject to the approval of the shareholders of Axiata/XL and any relevant governmental authorities.
Directors’ and Major/Substantial Shareholders’ Interest
None of the directors and major shareholders of Axiata and/or persons connected to them have any interest direct and/or indirect in the joint venture.
This announcement is dated 10 May 2016.
|Company Name||AXIATA GROUP BERHAD|
|Date Announced||10 May 2016|
|Category||General Announcement for PLC|