XL Axiata Tbk (EXCL) signed a Conditional Sale and Purchase Agreement (CSPA) to release 50 percent of its share in XL Planet (Elevenia), a company engaged in e-commerce. This decision was taken to reduce the losses from Elevenia. Post transaction, EXCL will focus on developing data service business.
Dian Siswarini, President Director of EXCL, said EXCL and its partners SK Planet Global Holdings Pte Ltd have gained offers from Jaya Kencana Mulia Lestari and Superb Premium Pte Ltd to divest XL Planet. EXCL and SK Planet have 50 percent each. Jaya Kencana and Superb Premium is allegedly an affiliated company with Salim Group.
“We took this decision through a careful calculation of various options that can add value to the company. This allows us to focus as a provider of data telecommunication services, while support for e-Commerce industry will still be done through digital features In the data services which are available for customers,” said Dian.
One of the considerations to release e-commerce business is the tight competition with some players and requiring substantial capital. “Newcomers from big players supported by giant investors have led to tougher competition and uncertainty about achieving profitability,” said Dian.
The transaction is targeted to be completed by the end of 2017 after the required conditions are met. Previously, Indosat Ooredo Tbk (ISAT) suspended its e-commerce business operations through www.cipika.co.id on June 1, 2017. Cipika, which operates as a marketplace since August 18, 2014, is considered incompatible with the
company’s core business.
On Thursday (24/8), EXCL fell 2.23 percent to IDR 3,510. (*)