STC in talks to sell Axis Telecom
Telco plans to sell Indonesian unit to settle $1.2bn loan
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.