Following the news that Etisalat will cease operations in India, reports are claiming that the UAE-based firm is looking to withdraw from Indonesia by selling its stake in local operator PTXL Axiata. The claims follow reports of deteriorating relations between Etisalat and PTXL’s majority owner, Malaysian operator Axiata.
Etisalat is reportedly aiming to sell its 13.29% stake for between US$600 million and US$700 million, and the firm is believed to have hired JP Morgan and Morgan Stanley to oversee the transaction. The involvement of either bank is currently unconfirmed.
A source told Reuters: "Etisalat thinks it hasn't been treated well in this deal... the reality is that the relationship soured a bit with the new management of Axiata. They have never been able to find a way to work together in four years."
PTXL is the third largest operator in Indonesia. Etisalat acquired its stake in the operator for US$440 million in 2007, attempting to increase its presence in the Southeast Asian market. In the fourth quarter of 2011, PTXL had 46.4 million subscribers, placing it behind Indosat and Telkomsel with 51.7 million and 107 million respectively.
