Indonesian mobile network operator XL Axiata announced on Thursday (24/08) that it signed a deal with South Korean partner SK Planet Global to sell both companies' entire stake in Elevenia, a local e-commerce platform, to companies affiliated with diversified conglomerate Salim Group. (Photo Courtesy of Image Dynamics.)
XL Axiata and SK Planet to Sell E-Commerce Platform Elevenia to Salim Group
BY :SARAH YUNIARNI
AUGUST 25, 2017
Jakarta. Indonesian mobile network operator XL Axiata announced on Thursday (24/08) that it signed a deal with South Korean partner SK Planet Global to sell both companies' entire stake in Elevenia, a local e-commerce platform, to companies affiliated with diversified conglomerate Salim Group.
XL said in the statement that it signed a conditional sales and purchase agreement with the Jakarta-based Jaya Kencana Mulia Lestari and Singaporean incorporated Superb Premium – both are associated with the Salim Group – to sell a 100 percent stake in Elevenia.
SK Planet and XL both owned 50 percent stakes each in Elevenia, and the final sale is expected to be wrapped up sometime in the second half of this year for an undisclosed figure.
XL said in the statement that the company's decision to pull out from Elevenia was due to tough competition with other e-commerce marketplaces in the country, as the industry is growing rapidly with numerous players backed by local and foreign conglomerates.
XL president director Dian Siwarini said the telecommunications provider will turn its focus on developing its mobile data service business after exiting from Elevenia.
"This decision is taken by careful calculation of various options that can add value to the company. This enables us to focus more as a provider of data telecommunication services. Meanwhile, the support for the e-commerce industry will be done through digital features in the data services for customers," Dian said.
Salim Group, the conglomerate behind Indonesia's largest noodle maker Indomie and keen to get involved in the country's budding e-commerce industry, previously established a joint venture with South Korea's Lotte Group to develop an online platform, expected to be released by the end of the year.
In January 2016, Elevenia raised $50 million in third round funding from SK Planet.