Saudi Telecom Company (STC) announced on Sunday it is kick-starting negotiations to sell its Indonesia subsidiary, PT Axis Telecom Indonesia, the Mubasher business news website reported.
STC acquired Axis in 2007 and owns a direct 80.10 percent shareholding and an indirect 3.725 percent indirect shareholding, added the website.
STC’s net profits reached 1.4bn riyals, a 41 percent drop in the second quarter (Q1) of 2013 from Q2 2012, and 8 percent from Q1 2013, reported the Saudi stock exchange (Tadawul).
The decrease in net profit, despite a 4 percent increase in gross profit during the first half of 2013, is mainly due to a non-cash charge worth 604m riyals in valuation of STC’s Axis investments. The slump is also down to unrealized FX losses of 505m riyals due to decrease in value of the Turkish Lira, Indian Rupee, and Indonesian Rupee, added the Tadawul website.
STC group announced it put its PT Axis assets on sale on June 30, reported Mubasher.