Obtained KPPU Approval, XL Getting Closer to Axis

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JAKARTA (IndoTelko) – XL has received KPPU’s approval to acquired Axis Telekom. It means XL and Axis merger is one step closer to completion.

The Commission has issued an opinion which stated that the acquisition of Axis by XL will not result in a possible monopolistic practice and unfair business competition.The KPPU’s supportive opinion has brought XL in getting a step closer to finalize the acquisition process.

Respond to this decision, President Director of XL Hasnul Suhaimi said the company are grateful for KPPU’s support to their coporate action because it’s a crucial milestone for consolidation of the national telecommunications industry.

“By obtaining the approval from KPPU, we have complied with all the regulatory requirements in the Conditional Sale and Purchase Agreement (CSPA). XL – Axis merger will provide substantial benefits for customers, as well as creating a healthier ecosystem in the telecommunications industry." Hasnul said.

Hasnul promised, after this approval and completed the acquisition, XL will remain committed to serve as maverick operator, a pro-community operator, which provides relatively affordable services to the Indonesian telecommunications consumers.

“This will allow customers to have the best value of money, not only in terms of affordability, but also in terms of quality and services experiences, as well as expanded product availability throughout Indonesia,” he said.

Hasnul also explained that XL will be in regular contact with the KPPU throughout the merger process to ensure compliancy with the prevailing rules and regulations, while ensuring that customers will absolutely enjoy significant benefits from the merger.

“AXIS merger will not trigger a monopoly practice. Total subscribers of XL and Axis (after merger) will reach more than 65 million, which represents approximately 21% of the market share. The figure is still far below the market share of other operators in Indonesia,” he added.

Previously, XL has received approval from the Ministry of Communications and Information Technology and from XL’s shareholders through Extraordinary General Meeting of Shareholders some time ago.

The Merger Statement of XL and Axis has obtained the Effective Statement from the Financial Services Authority (OJK) as well as no objection from the Indonesian Stock Exchange. In addition, both XL and AXIS have obtained the approval from the Investment Coordinating Board (BKPM) for the acquisition plan.

KPPU’s approval received by XL on March 6th, 2014 earlier than previous schedule which is expected on March 28th, 2014.(ss)

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