XL Sells Towers to Pay Debts

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  • TEMPO.CO, Jakarta – Listed cellular operator PT XL Axiata Tbk (IDX: EXCL) plans to sell a number of its telecom towers. The proceeds will be used to pay off the company's debts of some Rp15 trillion. XL spokesperson Turina Farouk several potential buyers have already proposed their bids.

    "The auction was opened last month, there is still a chance for prospective buyers to make their offers," she said told Tempo yesterday.

    XL is said to be targeting US$500 million sales proceeds. Several telecom infrastructure company such as Tower Bersama Group, Solusi Tunas Pratama, Sarana Menara Nusantara, and Telekomunikasi Indonesia Centratama have reportedly submitted their bidding documents.

    XL's decision to sell the tower was made in line with the company's target to lower its debts. In the first half of 2014, XL's debt-to-equity ratio (DER) doubled to 347 percent, year-on-year. The company's debts jumped due to the 101-percent short-term debt increase to Rp15.97 trillion. Its long-term debt also noted a high increase of 72 percent, totaling at Rp29.39 trillion.