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STC in talks to sell Axis Telecom

Telco plans to sell Indonesian unit to settle $1.2bn loan

STC in talks to sell Axis Telecom

Saudi Arabia's STC Group is in advanced negotiations to sell its Indonesian unit Axis Telecom to its rival, XL Axiata, according to a report from Reuters.

STC, which owns 84% of Axis Telecom, intends to use the proceeds of the sale to repay a $1.2bn loan tied to the Indonesian operation.

The report stated that STC has resolved a dispute with creditors over the $1.2bn loan by offering to repay about 90% of the loan, mainly through a sale of Axis Telecom.

According to Reuters, creditors, including HSBC Holdings, Deutsche Bank and Citigroup Inc, have been battling with STC to avoid potential losses of up to $600m after the state-owned firm asked banks to restructure the loan, to reflect the value of the business.

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