After a lengthy approvals process, Indonesia's XL Axiata has finally completed the $865 million acquisition of smaller rival Axis Telecom.
Axiata Group announced that its Indonesian subsidiary has signed concluding documents for the deal with Axis parent Saudi Telecom Company.
XL announced the deal to acquire 95% of Axis in September, but the merger required Axis to secure the consent of shareholders and a series of regulatory approvals for the deal. The last of these clearances were received last week.
“We are grateful to have reached the final phase of the acquisition with Axis. With the conclusion of this acquisition, XL has now become a majority shareholder in Axis,” XL president director Hansul Suhaimi said.
He said the acquisition proves that “consolidation in the [Indonesian] telecommunications sector has become a necessity to ensure a healthy and sustainable industry.”
XL secured $500 million in loans from shareholders and $365 million from foreign banks to fund the acquisition.