The Saudi Telecom Company (STC) has signed an agreement with its lenders to resolve the dispute over the loan it had earlier taken for acquiring a stake in PT Axis Telekom Indonesia. STC had raised $1.2 billion from banks such as HSBC Holdings, Deutsche Bank, and Citigroup to purchase an 84 per cent stake in PT Axis. According to the agreement with the lenders, STC would repay 90 per cent of the loan amount from the proceeds of the sale of the Indonesian unit. In this regard, STC has entered into a conditional agreement with Indonesia-based operator XL Axiata to sell a 95 per cent stake in PT Axis. It has appointed US-based investment bank Lazard for advice on this matter. Moelis has also been selected to help STC with the loan negotiations.
