Showing posts with label Axiata. Show all posts
Showing posts with label Axiata. Show all posts

Monday, June 21, 2021

Axiata and Telenor advance their Malaysian venture

Axiata and Telenor successfully completed their previously announced deal to merge Celcom Axiata Berhad (“Celcom”) and Digi (together “MergeCo”).

On a pro forma basis1, MergeCo will serve an estimated 19 million customers with revenue of RM12.4 billion, EBITDA of RM5.7 billion, Profit After Taxation of RM1.9 billion and Free Cash Flow of RM4.0 billion.

Axiata and Telenor will be equal partners with 33.1 percent ownership stake each in MergeCo, and MergeCo will continue to be listed on Bursa Malaysia Securities Berhad (“Bursa”). Targeted to be among the five largest companies listed on Bursa in terms of market capitalisation, MergeCo is valued at a combined pre-synergy equity value of close to RM50 billion3.

The integration planning phase will include further detailed work on synergies and business plan of MergeCo, and initial estimates indicate potential value accretion through cost and capex synergies of around RM8 billion on a net present value basis.

Axiata and Telenor seek to build a new Malaysian Digital Champion

Axiata Group and Telenor Asia are planning to merge the telco operations of Celcom Axiata Berhad (Celcom) and Digi.com Berhad (Digi) into a new Malaysian Digital Champion.

The partners will have equal ownership in the venture estimated at 33.1 percent each. Axiata together with Malaysian institutional funds will own over 51% of the merged company, which will be considered a leading telecommunications service provider in Malaysia in terms of value, revenue and profit, with proforma revenue of about RM12.4 billion, pre-synergy EBITDA of the combined entity at approximately RM5.7 billion, and an estimated 19 million customers. The new company will be named Celcom Digi Berhad and will continue to be listed on Bursa Malaysia.

Chairman of the Axiata Board, Tan Sri Ghazzali Sheikh Abdul Khalid, said: “We are exceedingly pleased to have come this far in discussing the potential merger of our Malaysian operations. The joint creation of a true Malaysian Champion, this merger of Celcom and Digi will see the coming together of the largest mobile operator with the firepower to trigger tremendous opportunities in helping Malaysia leapfrog into the Fourth Industrial Revolution and fulfil our vision of a digitised nation.”

Monday, May 6, 2019

Telenor and Axiata consider merging Asian operations

Telenor Group and Axiata Group Berhad are discussing a potential non-cash merger of their telecom and infrastructure assets in Asia (MergeCo), in which Telenor would take a 56.5% stake and and Axiata a 43.5% stake. The parties described the talks as preliminary.

If completed, MergeCo would have close to 300 million customers and become one of Asia’s largest mobile infrastructure companies operating approximately 60,000 towers across Asia. It is anticipated that the operational headquarters would be in Kuala Lumpur with the majority of functions. The company is planned to be listed at an international stock exchange as well as on Bursa Malaysia. In Malaysia, the intention is to merge Celcom and Digi, with MergeCo as the majority owner in the combined business.

Telenor's Asian operations include:

  • dtac, Thailand, 21.202 million mobile subscriptions (2018)
  • DiGi, Malaysia, 11.660 million mobile subscriptions (2018)
  • Telenor Pakistan, 43.530 million mobile subscriptions (2018)
  • Telenor Myanmar, 17.232 million mobile subscriptions (2018)
  • Grameenphone, Bangladesh, 72.732 million mobile subscriptions (2018)


Axiata's operations include:

  • Malaysia brands are celcom, e.co (infrastructure), Boost (financial services), ada (digital advertising), and apigate (digital platform)
  • Singapore brand is ada
  • Indonesia brands are ada, Boost, XL Axiata
  • Cambodia brands are Smart, e.co
  • Thailand brand is ada
  • Myanmar brand is e.co
  • Bangladesh brand is robi, e.co, and ada
  • Nepal brand is Ncel
  • Pakistan brand is e.co
  • India brand is ada and apigate
  • Sri Lanka brand are Dialog and e.co

“By creating one of Asia’s leading telecom players; with strong regional operations in nine countries and close to 300 million customers, we will combine scale and competence, thereby unlocking considerable synergies. I am confident this will create significant value for shareholders and will be beneficial to our customers,” said Sigve Brekke, President and Chief Executive Officer of Telenor Group.

Friday, May 19, 2017

Celcom partners with Ericsson to trial 5G technology in Malaysia

Celcom Axiata Berhad, an Axiata Group company with around 12 million customers, and Ericsson announced what they claimed is Malaysia's first 5G trial, and the first 5G trial to be conducted on the 28 GHz band in South East Asia.

The trial in Malaysia featured 5G radio prototypes and achieved a peak throughput of up to 18 Gbit/s with latency as low as 3 ms (milliseconds). The trial also demonstrated advanced 5G use cases such as robotic control, connected environment, virtual reality, Internet of Things (IoT) applications and 4K video streaming.

Ericsson noted that the demonstration follows the signing of a 5G memorandum of understanding (MoU) with Celcom in February 2017, which provided for a joint partnership to evaluate opportunities for 5G and IoT in Malaysia. Through the MoU, Celcom and Ericsson will aim to support technology development in Malaysia and the government Digital Malaysia initiative for the creation of a digital economy by 2020.

Celcom's recently announced 'journey to 5G' strategy will involve the deployment of key technologies such as 4 x 4 MIMO and 256QAM and is intended to provide customers with data speeds up to 400 Mbit/s. Celcom also plans to deploy IoT technology.

Ericsson noted that the 5G lab trial demonstration was attended by Yang Berhormat Dato' Jailani Johari, Deputy Minister of Communications and Multimedia, and Yang Berbahagia Dato' Sri Dr. Halim Shafie, Chairman of Malaysian Communications and Multimedia Commission at Menara Celcom in Kuala Lumpur.


Celcom is Malaysia's leading data network provider, with nearly 12 million customers, operating national 2G, 3G and 4G LTE networks that cover 98% of the population. Celcom is part of the Axiata Group, a major telecommunications group serving around 300 million customers in 10 Asian markets.


Friday, September 2, 2016

Is the Axiata Group of Malaysia just a smaller version of Singtel? - Part 2

 Foreword: -- Is the Axiata Group of Malaysia just a smaller version of Singtel? --Part 2 ------Some further data from the Axiata 2015 AR shows the distribution of revenue by country or group 

In thousands of Malaysian ringgits 

------------------>                    REVENUE.            EBITDA.          PROFIT 
MALAYSIA.                        7,330,177               2,719,163.          1,301,311 
INDONESIA                        6,619,966               2,512,587              (10,932) 
BANGLADESH.                 2,622,844                   944,179.            200,438 
SRI LANKA                        2,081,835.                 684,315.               98,581 
OTHERS.                             1,756,355.                452,831.           1,075,272 
ELIMINATIONS. (527,717). (29,021). (28,602) 
TOTAL 19,883,460. 7,284,054. 2,636,068 

As can be seen Malaysia provides just under 37% of total revenue but almost half total profit; Others are amazingly profitable 
The rest appear in poor shape profit wise. 

Recent news 
--------------------News just in on Axiata merger in Bangladesh 
On September 1st 2016, Axiata Group Bhd and Bharti Airtel Ltd received the approval of Bangladesh's High Court to merge their operations in the country. 

On completion of the merger, Axiata would hold a controlling 68.7% stake in the combined entity, while Bharti would own 25%. The remaining 6.3% would be held by existing shareholder NTT DoCoMo of Japan. Bharti Airtel Bangladesh is reported to have around 17 million mobile customers compared to Axiata Bangladesh's existing 50 million 

However, the merger fee and spectrum charge will come to almost RM320mil in total. Previously the possibility of very high charges had threatened to derail the merger. 

In its statement to the stock exchange on Thursday, Axiata did not say whether it would appeal, or consider to appeal, for a lower amount. 

Axiata had originally targeted to complete the merger transaction in the first half of 2016. In the latest announcement to Bursa Malaysia, it gave the fourth quarter of 2016 as the new deadline. The court in Bangladesh also ruled that spectrums assigned to Robi Axiata and to Airtel Bangladesh respectively prior to the proposed merger would continue to be used by the amalgamated company for the time period stipulated in the letter of assignment or license. 

-------------------Axiata could get control of M1 in Singapore 

In late January 2016, Bloomberg reported that, according to some of its private sources, Temasek Singapore's sovereign wealth fund was considering possible adjustments in their stock holdings by two of Temasek's portfolio companies namely Keppel and Sembcorp Marine, the world's No. 1 and No. 2 maker of oil rigs, of which Temasek owned 21.0% and. 49.5% respectively. 
Orders at Keppel and Sembcorp Marine, had dropped in 2015 to their weakest level in six years as falling crude prices crimped demand for drilling equipment and the two companies also faced cancellation risks from a major client in Brazil. Temasek also did not believe the demand for oil rigs would recover for at least three years. 

According to Bloomberg's informants, Temasek was considering the possibility of Keppel selling its 19.1 percent stake in wireless operator M1 Ltd. and paring its 44.6 percent interest in office landlord Keppel REIT. 
In early March 2016 a report by BMI Research suggested that if Keppel Corporation decided to sell off its 19.08% stake in mobile operator M1, then Temasek and, the Axiata Group which currently held a 28.32%* in M1 would be the most obvious buyers of Keppel’s stake. In Axiata's case acquiring Keppel’s stake would enable Axiata to own a controlling stake in M1, which in turn would give it better control over the telco's business direction and assets. 

Meanwhile, Keppel’s divestment would mean that the Singapore government, which holds stakes in all three operators, would be losing a major stake in the country's smallest operator. 


NB* Shown as 29.12% in Part 1 

----------------------India 

Axiata's subsidiary Idea Cellular has been doing very well in India generally gaining share every month and is definitively the country's third largest operator The company now has a clear 17 % mobile market share only 2.2 pp behind Vodafone 

In early June 2016, Axiata Digital invested $16 million in four years old StoreKing of India which uses modern low-cost technology kiosks equipped with low-cost TV monitors and Android tablets to provide a simple self-service shopping experience to small-town shoppers. 
With presence in over 1,200 towns, StoreKing’s model enables rural retailers to sell over 50,000 products to walk-in customers via the digital kiosks. The retail shop owner helps customers use the mobile kiosk, select products and make cash payment to the retailer. In return, a receipt is given and StoreKing ships the products to the retail store within 24-48 hours. Users then can collect their order from these retail stores. 
Currently, StoreKing operates 16,000 mobile kiosks with a network of local stores across south India. It claims to deliver over 150,000 orders every month from a base of over 1 million. 

--------------------Need to reduce debt in Indonesia 

At the end of March 2016, PT XL Axiata Tbk, signed an agreement to sell 2,500 of its broadcast towers to tower provider PT Professional Telekomunikasi Indonesia (Protelindo) for Rp 3.5 trillion (US$267.2 million) in an effort to pay off some of the company’s debt. 
XL Axiata finance director Mohamed Adlan bin Ahmad Tajudin explained that the sale of the towers was part of the company'€™s strategy to reduce its total debt, which stands at Rp 26.9 trillion and is due in 2020. 

Summary 
Axiata and Singtel do appear to be rather closely competitive in Indonesia, India, Bangladesh and Singapore. Both companies seem to have similar strategies but Axiata does not seem quite big enough to execute well 

Thursday, September 1, 2016

Is the Axiata Group of Malaysia just a smaller version of Singtel? --Part 1


--------- Preamble


 
Malaysia-based Axiata is an intriguing telecommunications company very similar in its structure and focus to Singtel but about half the size and which seems to fly below the radar in terms of international interest in the company. 

Axiata operates in about ten Asian countries and specifically has controlling interests in mobile operators in Malaysia (Celcom, 100%) , Indonesia (XL, 66.55%), Sri Lanka (Dialog, 83.32%) , Bangladesh (Robi,92.0%), Cambodia, (Smart,100%) and Nepal (60.4%) with significant strategic stakes in India (Idea,19.96%) Singapore (M1,29.12%) and Iran (NB Operating brand and percentage ownership are shown in each case). 

The Group also has stakes in non-mobile telecommunication operations in Thailand and Pakistan (Multinet,89.0%). It employs around 25,000 people and claims to serve around 290 million customers. In 2015, the company reported revenue of about $5.7 billion. The Axiata Group includes “edotco" an infrastructure company which operates in six countries i.e. Malaysia, Bangladesh, Cambodia, Sri Lanka, Pakistan and Myanmar and has amassed a portfolio of over 16,000 towers and 12,000 km of fibre. edotco claims to be the 12th largest tower company in the world. 

Axiata also has a digital services company, Axiata Digital which owns a portfolio of about 24 digital brands, operating in mobile money, mobile adverting, e-commerce, entertainment and education. From a strategic point of view Axiata looks rather more like an investment company than Singtel. On the other hand, Axiata gets a higher percentage of its total revenue from non - domestic sources than Singtel. 

------------------------Recent acquisitions 

------------Axiata enters Nepal market 

On April 12th 2016, Axiata acquired a controlling interest in Ncell Nepal's largest mobile operator by completing the acquisition from TeliaSonera UTA Holdings B.V. and SEA Telecom Investments B.V. of Reynolds Holdings Limited. The acquisition of Reynolds for the purchase price of $1.365 billion plus customary adjustments at closing, effectively secured Axiata an 80% equity interest and controlling stake in Ncell. 

Axiata enters the Nepal market with its local partner, Sunivera Capital Ventures Pte Ltd, holding 20% direct local shareholding in Ncell, as required under local law. Local partner transaction completion was a condition precedent to Axiata’s acquisition of Ncell. 
One special aspect of the acquisition is that there are apparently one million Nepalese workers in Malaysia which means the group gains whichever way calls are made. 

------------------Myanmar Tower business 

On December 4th 2015, it was announced that: Axiata Group Bhd’s telecommunication infrastructure services arm edotco had completed the acquisition of a 75% stake in Digicel Myanmar Tower Company Ltd (MTC) for $221million via MTC’s parent company, Digicel Asian Holdings Pte Ltd. 
Axiata also confirmed that Yoma Strategic Holding Ltd had signed a definitive agreement to retain its 25% effective interest in MTC. 

On January 15th 2016 edotco laid out a $200-million investment roadmap for its operations in Myanmar. The investment, to spread over five years, will include building and owning up to 5,000 towers in the country in partnership with Singapore listed Yoma Strategic. 
Speaking at the time, Suresh Sidhu, CEO of edotco Group Sdn BN said " We believe MTC is fantastic investment opportunity for edotco. We anticipate that by 2024, there could be up to 30,000 towers required in the country,” 

-------------------Other diversification 

In the half year of 2016, Axiata Digital further grew its portfolio with both investments, joint ventures and partnerships bringing the total to 26 digital brands under its management. Axiata Digital made its first investment into India through assisted e-commerce player, StoreKing in April 2016. In the mobile music space, Yonder Music is now live in three markets with over 400,000 users. Recently, WSO2.Telco, an Axiata Digital joint venture, announced that India’s six leading mobile network operators were using the WSO2.Telco digital enablement hub to deliver mobile authentication services for over 800 million consumers.  

In November 2014, Axiata set up the Axiata Digital Innovation Fund for startups and in early December 201 Intres Capital Partners, the manager of the MYR100 million ($23.38 million) Axiata Digital Innovation Fund (ADIF), committed MYR12.5 million ($2.92 million) in its first batch of investments in six digital startups. The venture firm, set up this year to manage ADIF, announced it would be disbursing that first round of investments into six technology companies domiciled in Malaysia, namely Tripfez, Maideasy, Easyparcel, Easyuni, SPOT News and Supahands. The investees were from a variety of sectors like travel, domestic cleaning services, delivery, education, media and virtual assistant services 

---------------------Last five year results (millions of ringgits) 

------------------->.    2015.         2014.          2013.            2012.           2011 
Revenue: -----        19.883         18.712.        18.371.        17,652         16,290 
EBITDA:------         7,284           6,999.          7,271.          7,424.          7,177 
PAT:--------------       2,636.          2,369.          2,739.          2,880.         2,712 
Subscribers mill :---    275.             266.              244.             205.           199 


Monday, December 21, 2015

TeliaSonera Sells its Stake in Nepal's Ncell

TeliaSonera will sell its 60.4 percent ownership in the Nepalese operator Ncell to Axiata, one of Asia’s largest telecommunication groups, for US$1,030 million on a cash and debt free basis. At the same time, TeliaSonera will dissolve its economic interests in the 20 percent local ownership and receives approximately US$48 million. The transactions are conditional on each other.

Axiata has more than 260 million customers and 25,000 employees. Axiata said Ncell will complement its portfolio of Asian telecommunications assets, which includes operations in Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, India, Singapore and Pakistan. Axiata, which is listed on the Malaysian stock exchange, is a reputable company with a strong focus and expertise in South Asia and is also a long-term investor contributing to development and advancements of the countries it operates in.

“In September we announced our ambition to reduce our presence in our seven Eurasian markets and focus on our operations in the Nordics and Baltics, within the strategy of creating the new TeliaSonera. Today, I am very pleased to announce a first step and proof point in this reshaping of TeliaSonera. I am also glad to see Axiata as a new owner. That gives me comfort that our dedicated employees are in good hands when taking Ncell to the next level,” says Johan Dennelind, TeliaSonera’s President and CEO.
 
http://www.teliasonera.com/en/newsroom/press-releases/2015/12/teliasonera-divests-its-holding-in-ncell/
http://www.axiata.com/