Etisalat sale of its 13.3% stake in the Indonesian mobile network ?

UAE based Etisalat is reported to be considering the sale of its 13.3% stake in the Indonesian mobile network, XL Axiata. The sale would raise between US $600 to US $700 million.

Etisalat is said to be considering the sale following a break down of relations with the majority shareholder, Malaysia’s Axiata Group.

“Etisalat thinks it hasn’t been treated well in this deal… the reality is that the relationship soured a bit with the new management of Axiata,” a source — who declined to be identified because of the sensitivity of the matter — told theReuters news agency.

Etisalat paid US$40 million for the stake in XL Axiata in 2007.

The mobile network operator is 84% owned by Axiata Group, with the remainder held by Etisalat, and a tiny amount floated on the stock market.

Etisalat has hired JPMorgan and Morgan Stanley to handle the sale, which may launch via an equity placement, the sources said.