Excelcom plans $300M rights issue

Indonesia's third-largest mobile phone operator, PT Excelcomindo Pratama, plans to raise $300 million via a rights issue in the fourth quarter, the company said on Tuesday, Reuters reported.

"With the financing, Excelcomindo will be able to reduce debt and improve our capital structure, thus preserving our flexibility to continue investing," president director Hasnul Suhaimi said in a statement.

The target is lower than previously indicated by Malaysian mobile operator Axiata, the controlling stakeholder of Excelcom, in May when its chief financial officer Yusof Annuar Yaacob said Excelcom needed as much as $600 million to improve its capital structure.

Excelcom, 83.8% owned by Axiata, has previously said it plans to increase its free float, which now stands at 0.2%, to make share trading more liquid. Emirates Telecommunications Corp holds the remaining 16%.