KUALA LUMPUR: Shares of Axiata Group Bhd were flat this morning, despite news that the telco company had acquired Nepal’s leading mobile operator, Ncell Pte Ltd, for US$1.37 billion (RM5.67 billion).
As at closing, Axiata’s shares was at RM6 with 6.13 million units transacted.
Last week, Axiata received the greenlight from its shareholders at an extraordinary general meeting for the proposed acquisition of Ncell.
Upon completion of the deal, Axiata’s regional footprint will expand to 10 countries across Asia.
This effectively gives the company a contiguous presence in five key countries across South Asia.
The group’s combined reach in Southeast Asia and South Asia will cover a total population of 1.77 billion and further solidify it as one of the leading mobile operators in the region with over 280 million customers from 268 million today.
Ncell, when consolidated, would be immediately accretive to Axiata’s financials.
Based on Axiata’s financial year 2015 pro-forma revenue, earnings before interest, taxes, depreciation, and amortization and profit after taxation and minority interests, Ncell would provide an uplift of about 11 per cent, 19 per cent and 13 per cent respectively.
It was reported that Axiata had been eyeing the Nepal market for two years but only got really serious over the past few months.
Axiata has also announced that it was acquiring a 100 per cent stake in Reynolds Holdings Ltd from Telia Sonera UTA Holdings BV and SEA Telecom Investments BV for US$1.37billion.
The acquisition of Reynolds gives Axiata an 80 per cent stake in Ncell. — Bernama