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TELEKOM Malaysia Berhad (TM)’s Indonesian associate, PT Excelcomindo Pratama (XL) today commenced trading on the Jakarta Stock Exchange (JSE). XL made its debut at Rp2,100 per share from its issue price of Rp2,000 per share.

TM said in a statement released in Kuala Lumpur that the final approval for the XL Initial Public Offering (IPO) was obtained from the Indonesian Capital Markets Supervisory Agency (Bapepam) on 16 September 2005 and the final allotment of shares was carried out on 27 September. XL filed its listing intentions to Bapepam on 8 August 2005.

The IPO consists of 1,427,500,000 Ordinary Shares, which reflects 20.1 per cent of the enlarged share capital of XL. TM’s stake in XL is held through Indocel Holding Sdn Bhd, which is a subsidiary wholly owned by its international investment holding company, TM International Sdn Bhd (TM International). TM International acquired a 27.3 per cent interest in XL in a transaction concluded on 15 June 2005.

Shareholding Structure upon Listing
Describing the allotment of the 20.1 per cent stake, the statement stated that Indocel Holding Sdn Bhd subscribed an additional 3.2 per cent of XL at the IPO. Khazanah Nasional Berhad (Khazanah) also subscribed 16.8 per cent of XL at the IPO.

Khazanah in its release today on its successful participation in XL IPO states that it believes that the subscription represents a significant co-investment opportunity with a key investee company. The investment into XL also provides an excellent platform for exposure into an important market and is an important strategic investment and commitment by Khazanah into the Indonesian telecommunications market.

Objectives of the Offering
In addressing the objectives of the listing TM Group Chief Executive Officer and XL Commissioner Dato’ Abdul Wahid Omar said, “The IPO of XL enables the company to raise some USD281 million in order to part finance its expansion plans. As a listed company, XL has put in place proper corporate governance structure to ensure the Company is professionally run. The listing status will also raise its corporate profile and enhance the XL brand.”

The statement further added that the Indonesian market is significant in fulfilling TM’s strategy of prudent international expansion. This is because TM is able to infuse fresh capital into XL to strengthen its balance sheet and enable it to fund future expansion plans. TM is committed to an aggressive capital expenditure plan for XL, given the immense potential in subscriber growth in Asia’s third most populous country.

Some USD200 million from the IPO proceeds will be used to finance XL’s expansion plans. XL has announced an aggressive USD720 million capital expenditure programme over the 2005-2006 period, including modernisation of the existing network platform as well increase in network capacity. The effectiveness of XL’s capital expenditure will be further assisted by the 25 per cent capital expenditure savings from bulk buying under the TM umbrella of companies.

Main Parties to the Issue
The Joint Lead Underwriters for the XL IPO are PT CIMB Niaga Securities and PT GK Goh Indonesia.

About XL
XL is the first private cellular operator in Indonesia, which was established in November 1995 and started operating commercially on October 8, 1996. XL’s core business is Consumer Solutions, offering dual band cellular network though its pre-paid calling card jempol and bebas as well as its’ post paid card Xplor. XL’s corporate division, known as Business Solutions, offers an integrated telecommunication solutions for its’ corporate customers. Business Solutions services are Leased Line and IP based.

XL is the only telecommunication company which owns and operates its’ own GSM and broadband wire line infrastructure. XL’s fibre optic backbone infrastructure is supported by four backup rings as redundant alternative access to ensure high quality and reliable services. XL’s wide coverage network spans across Java, Bali, Lombok, Sumatra and Singapore, as well as a submarine fibre optics in Kalimantan and Sulawesi.

As at 30 June 2005, XL had a subscriber base of 4.3 million with 98 per cent prepaid and 2 per cent post paid subscribers.

About TM
TM, a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Securities with an operating revenue of more than RM13 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.

The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 12 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.
For further information on TM, visit www.tm.com.my

About TM International
Through its investment-holding arm, TM International, TM is one of the leading regional telecommunications companies with interests in Singapore, Sri Lanka, Bangladesh, Pakistan, Indonesia, Thailand and Cambodia. It also has selected investments in Africa namely in Guinea and Malawi.

TM International has a track record of adding value to its investments, and an approach which focuses on developing the skills and capabilities of its local management teams and working in partnership with these local teams to achieve strong market positions and profitability.

Activated in 2001, TM International contributes significantly to TM’s overall performance. In the financial half year ended 30 June 2005, TM’s overseas investments contributed operational profit after tax of RM203.4 million (or 25.4 per cent), compared to RM291.9 million (or 20 per cent) in the corresponding period in 2004.