Indonesian mobile services provider XL Axiata has secured approval from the Ministry of Communications and Information Technology to acquire Axis Telekom Indonesia. Malaysia’s Axiata Group, which has a 66.5 per cent stake in XL Axiata, has reportedly offered to acquire Axis Telecom, which is controlled by the Saudi Telecom Company (STC) whose stake in the company is 84 per cent. It is speculated that the merger would give XL Axiata access to the radio frequencies it needs to expand in the Indonesian market. Though the value of the acquisition has not been reported, Saudi Fransi Capital valued Axis (including its outstanding debt) at $1 billion.
