Axiata to fully subscribe to XL’s rights issue

KUALA LUMPUR: Axiata Group Bhd will fully subscribe to the pro rata rights entitlement under the rights issue announced by its Indonesian subsidiary, PT XL Axiata Tbk (XL).

On Monday, XL announced its plans to implement a rights issue with net proceeds from the capital raising exercise going towards the repayment of the its US$500mil shareholder loans.

In a statement on Tuesday, Axiata president and group chief executive officer Datuk Seri Jamaludin Ibrahim said the exercise would help XL to improve its debt to earnings before interest, taxes, depreciation and amortisation ratio.

This, he said, would further strengthen XL’s balance sheet and give enough room to invest for future growth. 

“As a committed, long-term investor in XL, our intention to fully subscribe to our pro rata entitlement is a testament to XL’s growth potential, and we are pleased with the progress of its transformation agenda,” he added.

The rights issue is subject to XLs shareholders approval through an extraordinary general meeting scheduled for March 10, 2016. 

The remainder of the rights issue is expected to be fully underwritten. - Bernama