Telco - EXCL's parent company mulls options to develerage

Telco - EXCL's parent company mulls options to develerage Parent company of XL Axiata (EXCL), Axiata Group is mulling options in a move to deleverage its debt currently amounted to USD10.7 bn in 1Q23. The debt was utilized to finance its expansions in Indonesia for an acquisition of First Media (LINK) and a tower company in the Philippines. Options considered are including rights issue or divestment of its stakes in Edotco. Additionally, it also mulls to get its tech subsidiary to public and possible divestment in LINK being the last option. (Source : Bisnis Indonesia) Comment : While we are still waiting for more information to come out, we see that the market seems to welcome the news on the company efforts to deleverage. Although it may bring uncertainty pertaining to continuity of EXCL's transformation with LINK. However, we believe that possible divestment in LINK may be carried out after transformation is completed.