The Information and Communication Technology Ministry has finally given its approval for the purchase of PT Axis Telecom Indonesia (Axis) by PT XL Axiata. On Sunday, the Indonesian ministry announced that it had given its consent through a letter dated November 28. This was according to a report published by The Jakarta Post.
The ministry said in a released statement, "The ministry approved the acquisition plans, which would be followed by a two-phased merger as outlined by both operators."
XL Axiata is a subsidiary of Malaysia's Axiata Group Berhad. The firm is also the second largest operator in the telecom market. In September, the company signed a conditional sale and purchase agreement with Saudi Telecom Company and its subsidiary Teleglobal Investments B V for the acquisition of a 95% stake in Axis. The said agreement was valued at USD865 million, the report detailed.
The ministry also mentioned that XL Axiata and Axis need to return several blocks of allotted frequency as a requirement for the approval of the transaction. The ministry would then hold a selection process to decide which operators could take over the relinquished blocks, The Jakarta Post reported.
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