Spot on! Axiata need cash to finance it overseas operations, to have larger pie in Indonesia and India growing mobile market. But, there is a potential this company will grow and so does the share price when upon capturing larger market share.



This post has been edited by andrewckj: Nov 18 2009, 08:21 PM

Wah, you must be laughing to the bank. By the way, is Axiata considered a defensive stock? I knew besides Celcom, they have operation in other new market such as India and Bangladesh. Am thinking into buying for long term for my portfolio diversification. Thank you in advance sifu/ simuis!

This post has been edited by andrewckj: May 11 2011, 11:29 PM

Topics : Private Equity
Industries : Telecom
Category : Rumor
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Malaysia's Axiata Group Bhd (earlier Telekom Malaysia) may sell around 5% stake in Idea Cellular Limited.

Axiata holds 19.8% in Idea via TMI Mauritius and TMI India and may exit the company on account of licence cancellations and penalties.

Transaction Reference: Moneycontrol.com

Transaction Note

Axiata bought Idea stake for Rs.100 per share in 2008. At the current stock price of Idea at around Rs.67, Axiata's 5% stake sale may be valued at around Rs.1100 Cr.

Axiata entered Idea after BK Modi-led Spice Communications agreed for a merger with Idea. Axiata held 39.8% in Spice. At the time of the merger in 2008, Idea Cellular's shares were trading around Rs.100 a share, but has fallen by more than 40% over the last two years. It has since recovered to trade around the 70 kind of mark.

Idea has not yet received approval from the DoT to go ahead with the merger.

Last week, Indian Telecom Ministry issued a showcause notice to Idea Cellular for the Karnataka circle and Spice for the Andhra Pradesh circle for cancellation of licences on account of a delay in network roll-out.

Idea and Spice had procured these licences in January, 2008, under former Telecom Minister A Raja, who has been arrested on charges of irregularities in distribution of 122 new licences along with 2G spectrum.

Trai had also recommended the cancellation of licences of Idea and Spice in five states for their failure to roll out services within the stipulated time.

As of March 31, 2011, Idea Cellular has 8,95,03,318 mobile subscribers.

Aditya Birla Group holds 46.04% in Idea.

Source: http://dealcurry.com/20110517-Malaysia-s-A...ea-Cellular.htm