Sign up | Log in



Home  >>   Daily News  >>Indonesia>>Companies>>XL Axiata sells 2,500 towers to settle debt
NEWS UPDATES Asean Affairs   31  March  2016  

XL Axiata sells 2,500 towers to settle debt

Telecommunication company PT XL Axiata on Tuesday signed an agreement to sell 2,500 of its broadcast towers to tower provider PT Professional Telekomunikasi Indonesia (Protelindo) for Rp 3.5 trillion (US$267.2 million) in an effort to pay off some of the company’s debt.

XL Axiata finance director Mohamed Adlan bin Ahmad Tajudin explained that the sale of the towers was part of the company’s strategy to reduce its total debt, which stands at Rp 26.9 trillion and is due in 2020.

“The sale of these towers is not only to help us cut our rupiah debt, but is also in line with our 3R strategy, which is revamp, rise and reinvent, that we have implemented since last year,” he said on Tuesday.

XL Axiata has been aggressively reducing its exposure to currency risk by advancing foreign-denominated debt repayment as well as converting outstanding obligations into rupiah.

Currency costs began to pinch XL Axiata’s performance after it acquired Axis Telekom Indonesia in 2014. The acquisition drove up operational costs and caused ballooning debt to fund the acquisition.

The company’s net foreign losses tripled from Rp 1.06 trillion in the first nine months of 2014 to Rp 3.03 trillion in the corresponding period last year.

Earlier this year, the company announced that it was selling its towers through an open bidding process to reduce its debt.

Eight companies had expressed their interest in buying the towers, with Protelindo eventually named as the winner for the deal, which is expected to be concluded by June.

XL Axiata used to possess 10,000 broadcast towers across the archipelago, before selling off 3,500 in 2014 to tower company PT Solusi Tunas Pratama for Rp 5.6 trillion.

After the anticipated release of another 2,500 towers to Protelindo, Adlan said XL Axiata had no plans to put its remaining 4,000 towers up for sale, seeking to avoid disruption in the company’s network coverage and services.

“Hopefully, with the sale of these 2,500 towers, XL’s financial state will become slightly better,” he said.

Despite the change in towers ownership, XL Axiata will still rent 2,432 of its formerly owned towers from Protelindo in order to maintain its network strength, at a lease of Rp 10 million per month per tower for the next 10 years.

XL Axiata’s recently green-lighted a preemptive rights issue to help pay off a $500 million loan provided by its parent company Axiata when the former acquired Axis from Saudi Telecom Company (STC), previously the majority shareholder in Axis, for $865 million.

The remaining funds for the acquisition were provided by three banks, namely UOB, Bank of Tokyo Mitsubishi and DBS.

The value of this preemptive rights issue will likely be announced in April or May.

Meanwhile, Adlan revealed that XL planned to spend up to Rp 7 trillion to improve its network coverage and expand its 4G network this year.

XL’s 4G network coverage is currently available in 36 cities nationwide, with the company targeting to serve up to 85 cities by the end of this year.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           March 31, 2016 Subsribe Now !
• Investment guarantees for VN investors Subcribe: Asean Affairs Global Magazine

• TPP forecast to give Vietnam a boost over Cambodia
• TPP discussion with Hou
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

Thai Union to buy US$18m stake in India’s Avanti Feeds’ unit 
XL Axiata sells 2,500 towers to settle debt
Asean Analysis                   March 18, 2016
• Asean Analysis March 18, 2016
Southeast Asia Dances to the Tune of Japan's Abe Doctrine
Advertise Your Brand

Asean Stock Watch  March 30, 2016
• Asean Stock Watch-March 30, 2016
The Biweekly Update
• The Biweekly Update March 18, 2016

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand