Elevenia divestment awaits blessing from BKPM

JAKARTA (IndoTelko) - PT XL Axiata Tbk (XL) said they're waiting for the blessing of the Investment Coordinating Board (BKPM) to complete the transaction of their shares release in one marketplace, Elevenia.

"Our position is now awaiting the news from BKPM for all to be completed," said Finance Director of XL Mohamed Adlan bin Ahmad Tajudin.

Previously, this subsidiary of Axiata entered into a Conditional Sales Purchase Agreement (CSPA) to release its entire stake in PT XL Planet. They oversee the Elevenia marketplace, including all shares of SK Planet Global Holdings Pte. Ltd. (SK Planet), to PT Jaya Kencana Mulia Lestari and Superb Premium Pte. Ltd.

XL Axiata owns 50% interest in Elevenia, similar to that owned by SK Planet. This CSPA Agreement applies to the transfer of shares owned by XL Axiata and SK Planet.

One of the biggest telecommunication providers in Indonesia was trying to join eCommerce market by establishing Elevenia.co.id. They're joining SK Planet Co Ltd from South Korea. XL and SK Planet deposited an initial capital of US$18.30 million or equivalent to Rp177.6 billion to form the joint venture. Both parties also get 50% share ownership.

Unfortunately, Adlan is reluctant to disclose the nominal value of the transaction. Although the explanation was complete in the XL third quarter financial statement. It is seen that net cash revenue goes to the company with Rp72.5 billion.

"The exact figure is in the Financial Statement, according to the valuation of the Elevenia, it is certain that all of XL's obligations in Elevenia have been taken over by the new owner," he said.

Adlan said it was hard for XL to play eCommerce considering its business model, the expense is bigger than revenue. "The cost to become a transaction is big, while the income we had received does not cover the expenses. Elevenia loses every month," he concluded.(es)