Malaysian telecoms giant Axiata is planning to create a separate entity for its infrastructure assets. The move could pave the way for the listing of nearly 20,000 towers, analysts say.
The assets would be pooled in a real estate investment trust…
Malaysian telecoms giant Axiata is planning to create a separate entity for its infrastructure assets. The move could pave the way for the listing of nearly 20,000 towers, analysts say.
The assets would be pooled in a real estate investment trust before being listed but no timeline has been given, HwangDBS Vickers Research said in a note to clients quoted by local media.
However, the fund would not include Axiata’s Indonesian operations XL Axiata, which recently agreed to buy local rival Axis for US$865m.
The Malaysian company operates in nine countries across Asia and a separate infrastructure arm would allow it to manage costs more efficiently, the analysts said.
In late August, it had already been reported that Axiata was hoping to raise a minimum of US$500m by floating some tower assets. It is thought to have hired several banks for advice.
The group, which could not be reached for comment before the press deadline, generated MR17.7bn (US$5.4bn) in revenues last year and recorded MR7.4bn (US$2.2bn) EBITDA.
Meanwhile in Thailand, mobile operator True Corp has secured shareholders’ approval to list an infrastructure fund aimed at raising between Bt60bn (US$1.9bn) and Bt80bn (US$2.5bn).
True, which controls the country’s third largest mobile operator, is planning on buying up to one-third of the fund while the remaining stake will be sold to the public. It will then lease its infrastructure back from the company.
Proceeds will be used to help pay part of its debt load, which stood at approximately Bt100bn (US$3.2bn) as of March 2013.
Up to 12,000 towers are expected to be included in the fund but this figure may fall to 6,000 because of an ownership dispute with state-owned CAT Telecom, according to a Reuters report.
