Malaysian telecommunications company Axiata Group Bhd is in talks to purchase a smaller rival in Indonesia in a share swap to chop costs and competition in its largest market because the Covid-19 pandemic hits businesses, its chief executive told Reuters.
After PT Telekomunikasi Indonesia Tbk, Axiata’s PT XL unit Axiata Tbk is the second-largest player by subscribers in Southeast Asia’s most populous country. Axiata is followed by PT Indosat Tbk, PT Smartfren Telecom Tbk and the local telecommunications unit of Hong Kong conglomerate CK Hutchison Holdings Ltd.
“Except for the biggest player, I can say that we are currently talking to everyone about some kind of agreement,” Axiata CEO Jamaludin Ibrahim told Reuters in an interview on Microsoft Teams on Saturday, declining to specify the goal.
“I can’t imagine buying two and you don’t have to anyway.”
PT Indosat, which has a market capitalization of 10.68 trillion rupees ($727 million), PT Smartfren, value 21 trillion rupees ($1.4 billion), and native, unlisted Hutchison, couldn’t immediately be reached for comment.
Jamaludin said Axiata Group, which has a market capitalization of about $8 billion, conducted due diligence last yr and the data obtained might be “partially” useful if the deal goes through this yr.
Jamaludin, who’s retiring at the top of this yr, said Axiata can be on the lookout for job opportunities in Malaysia and Sri Lanka. The company also operates in Bangladesh, Cambodia, Nepal, Pakistan, Myanmar, Thailand, Laos and the Philippines.
“I hope at least one country will happen before I retire. Either Malaysia, Indonesia or Sri Lanka,” he said. “COVID-19 makes consolidation more necessary, even more than before, so discussion with all parties becomes essential.”
Source : Reuters
