Indonesia's XL Axiata has won shareholder approval to acquire rival Axis Telecom and its valuable 2G spectrum for around $865 million.
XL Axiata got the all-clear from the Ministry of Communication and Informatics late last year, leaving the consent of competition watchdog KPPU the last remaining approval still required. The KPPU's decision is expected by the end of March.
The operator announced a deal in September to acquire Saudi Telecom Company's 95% stake in Axis Telecom in exchange for taking on $865 million worth of debt.
The acquisition will be funded through a $500 million loan from the Axiata Group and $365 million in loans from banks.
The Jakarta Globequotes XL Axiata executives as stating that while it will be difficult to shoulder the financing costs of the acquisition, the company needs Axis' 15 MHz of 2G spectrum to survive going forward.
XL Axiata currently only has 15 MHz of 2G spectrum, compared to 30 MHz each for rivals Telkomsel and PT Indosat.
The company is considering selling off some of its or Axis' tower assets to raise funds for the acquisition.