PETALING JAYA: Axiata Group Bhd has entered into a sales and purchase agreement for the disposal of a 5% stake in PT XL Axiata Tbk for 1.44 trillion rupiah (RM423.5 million) via its indirect wholly owned subsidiary Axiata Investments (Indonesia) Sdn Bhd.
According to its Bursa filing, the shares will be taken up by Ferrymount Investments Ltd, Procap Partners Ltd and Tiga Investments Pte Ltd and the consideration translates to a price of 79 sen per share.
Prior to the disposal, the group held a 66.5% stake in the Indonesia Stock exchange-listed XL.
The disposal facilitates the introduction of Indonesia-focused investors in XL as Procap is linked to the GoTo Group formed by the merger of two Indonesian unicorns Gojek and Tokopedia while Tiga Investments has been an active investor in the technology sector and in Indonesia.
“Axiata is of the view that the disposal which provides XL with access to the business partnerships of Procap and Tiga Investments amongst others, will place XL in a better operational footing in the near future. At the same time, Procap’s and Tiga Investment’s linkages to the Indonesian digital ecosystem will enable XL to actively engage and further develop its digital and value-added services to offer its current base of about 58 million customers, thereby improving the user experience ,” it told Bursa.
The consideration was arrived on a willing-buyer willing-seller basis after taking into account the share’s prevailing market price and the consideration translates to a 5% discount to its one-month volume weighted average (VWAP) market price of 84 sen.
Ferrymount has granted a call option to purchase the disposed shares for the selling price. The call is exercisable should the three-month VWAP of the shares fall below 28 sen per share on either March 31, 2022 or June 30, 2022. On the other hand, the option will be revoked should the three-month VWAP of XL exceed 97 sen per share at any time during Jan 1 to June 30, 2022.