Malaysia’s Axiata Group Berhad (MYX:6888) and India’s Bharti Airtel (NSE:BHARTIARTL) are in exclusive talks about a potential combination of their Bangladeshi businesses.
Malaysia’s Axiata Group Berhad (MYX:6888) and India’s Bharti Airtel (NSE:BHARTIARTL) are in exclusive talks about a potential combination of their Bangladeshi businesses.
The companies said in a stock exchange filing that the announcement “is to facilitate ongoing discussions and exchanges of information between the parties”, adding that these include, but are not limited to, talks with regulators.
Robi Axiata, the number three cellco, is owned by Axiata (92%) and Japan’s NTT Docomo (8%).
Earlier this month, Indian media reported that Airtel had hired bankers to sell its mobile operations in Bangladesh and Sri Lanka to enable it to focus on core operations and cut debt, with interested parties including France’s Orange and the UAE’s Etisalat.
Airtel is reportedly also looking at selling its tower businesses in Bangladesh and Sri Lanka, where it owns about 4,000 and 2,500 sites respectively.
Responding to the report in a stock exchange filing, Airtel said it “keeps evaluating various opportunities on an ongoing basis in ordinary course of business and will make necessary disclosure as and when required”.
Airtel is number four in Bangladesh’s six-player market with 27.92 million subscribers, according to the local telecoms regulator.
Airtel’s Sri Lanka and Bangladesh businesses generated combined revenues of Rs3.9bn (US$58.8m) in Q2 2015, down 11% year-on-year. They contributed 2% of Airtel’s total revenues. EBITDA for the two businesses was down 304% to Rs476m (US$7.2m).
Bangladesh’s two largest mobile operators are Telenor-controlled Grameenphone and Vimplecom’s Banglalink.