Etisalat confirms cashing out of Indonesia’s XL Axiata

Etisalat today confirmed it has sold a total of 775 million shares in PT XL Axiata (XL), a mobile operator in Indonesia in which it has a stake.

The 775 million shares represent a total of 9.1 per cent of XL’s issued share capital, representing a value of approximately AED 1.87 billion (US$510 million) before commission and expenses. The settlement of the placing is expected to take place on September 18, 2012.

Etisalat owned a 13.3 per cent stake in the Indonesian company, which it bought in 2007 for US$440 million. The sale of the stake is less than the US$600-700 million valuation it was thought to be worth earlier this year when rumours of the sale first emerged.

Following the completion, Etisalat will hold a 4.2 per cent ownership stake in XL.