XL Axiata seeks to raise up to $500 million in a rights offering later this year and plans to sell some of its telecommunication towers by June, XL Axiata's chief financial officer said on Tuesday. (JG Photo/Dhana Kencana)

XL Axiata Shares Rally Amid Rights Issue, Tower Sale Plan

BY :DION BISARA

FEBRUARY 02, 2016

Jakarta. Shares of XL Axiata, Indonesia's third largest mobile operator by number of subscribers, rose to their highest level in seven weeks, as investor confidence was buoyed by the company's plan to reduce its debt.

XL Axiata stock was traded at 3,950 a piece at midday on the Indonesia Stock Exchange (IDX) on Tuesday, up 5.6 percent from Monday's (1/2) closing. The broad market benchmark fell 0.5 percent, extending the 0.8 percent decline from Monday.

XL Axiata seeks to raise up to $500 million in a rights offering later this year and plans to sell some of its telecommunication towers by June, XL Axiata chief financial officer Mohamed Adlan bin Ahmad Tajudin told reporters on Tuesday.

Dian Siswarini, the company's president director, said earlier that XL Axiata seeks to pay all of its $500 million outstanding debt to Malaysia's Axiata, its parent company, this year.

XL Axiata sold 3,500 towers to Solusi Tunas Pratama in 2014 to help pay off a total of $580 million in unhedged dollar-denominated debt.

The network operator also managed to reduced its losses to Rp 25.3 billion ($1.7 million) last year from Rp 803 billion in 2014, the company said in a statement on Monday.

Additional reporting by Reuters

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