Axiata’s CFO, Datuk Yusof Annuar Yaacob said on the sidelines of the CommunicAsia 2009 conference in Singapore that the group is exploring opportunities for consolidation in Bangladesh, Cambodia and Sri Lanka to strengthen its longer-term position in these markets. Axiata’s intentions are echoed by Ahmed Abou Doma, the CEO of Banglalink (the second largest mobile operator in Bangladesh) who responded to earlier reports that Banglalink had started discussions with Axiata on a potential consolidation of its mobile unit with that of Aktel.
Maintain TRADING BUY recommendation based on SOP target price of RM2.70 (Celcom contributes 71%). Axiata remains our preferred longer-term exposure to the Malaysian telecoms sector on account of the improving prospects of its mobile assets in Sri Lanka, Indonesia and Malaysia. Stock will also benefit from the increased weighting under the new FBM KLCI and the low foreign shareholding of 8.8%.The reason why Axiata is not an outright buy is due to concerns over the potential cash call exercise at its 83.8% subsidiary in Indonesia (Excelcomindo) which is looking to fund its capex and cut borrowings.
Axiata Expects Forex Gain in April, May
Malaysian mobile phone operator Axiata is expected to post foreign exchange gains in April and May, after its first quarter results were hit by forex losses, its chief executive said yesterday. Axiata CEO Jamaludin Ibrahim also said in an interview that the planned capital-raising for its Indonesian unit, PT Excelcomindo Pratama Tk,
was on track to be completed this year and could involve a rights issue. Excelcom, Indonesia’s third-largest mobile phone operator, has been planning to raise funds to support its capital expenditure. It also needs to increase its free float to make share trading more liquid, which could dilute the holdings of existing shareholders. (BT)
Axiata Expects Forex Gain in April, May
Malaysian mobile phone operator Axiata is expected to post foreign exchange gains in April and May, after its first quarter results were hit by forex losses, its chief executive said yesterday. Axiata CEO Jamaludin Ibrahim also said in an interview that the planned capital-raising for its Indonesian unit, PT Excelcomindo Pratama Tk,
was on track to be completed this year and could involve a rights issue. Excelcom, Indonesia’s third-largest mobile phone operator, has been planning to raise funds to support its capital expenditure. It also needs to increase its free float to make share trading more liquid, which could dilute the holdings of existing shareholders. (BT)