XL Axiata, Indosat to form JV company

PETALING JAYA: Axiata Group Bhd's 66.43% owned subsidiary PT XL Axiata Tbk (XL) has entered into a deed of establishment with PT Indosat Tbk (Indosat Ooreedoo) to establish a joint venture (JV) company called PT One Indonesia Synergy Tbk.
In a filing with Bursa Malaysia yesterday, Axiata said the JV company will provide consultancy services in future network collaboration, noting the transaction parties are in the process of jointly exploring the possibility to enter into such collaboration.
Under the terms of the deed, Axiata said XL has subscribed 1,251 ordinary shares of IDR1 million, totalling IDR1.25 billion (RM381,286), representing 50% of the total issued and paid-up share capital of the JV company, with the remaining held by Indosat Ooredoo.
Axiata said the subscription shares does not have any effect on the group's issued and paid-up share capital and is not expected to have any material effect on its earnings, gearings and net assets for the financial year ending Dec 31, 2016.
The group said the subscription shares was funded through internal generated funds.
Operating commercially since October 1996, XL is a cellular service provider in Indonesia, serving 42.5 million subscribers currently, whereby Indosat Ooredoo is controlled by Ooredoo Group, of which 65% of its shares indirectly owned by the group.
Ooredoo, formerly known as Qatar Telecommunications, is an international communications company delivering mobile, fixed, broadband internet and corporate managed services across markets in the Middle East, North Africa and Southeast Asia.