Malaysian telco Axiata Group has acquired Cambodian telco Latelz for US$155m and will merge it with its local entity in the country.
Axiata said it would merge its Cambodian subsidiary Hello Axiata with Latelz, which operates under the Smart Mobile…
Malaysian telco Axiata Group has acquired Cambodian telco Latelz for US$155m and will merge it with its local entity in the country.
Axiata said it would merge its Cambodian subsidiary Hello Axiata with Latelz, which operates under the Smart Mobile brand name.
BofA Merrill Lynch (Singapore) is acting as sole financial adviser to Axiata.
The deal will give Axiata a 90% stake in the combined entity, which will be one of Cambodia’s largest operators in terms of subscribers and revenue.
“Axiata has always communicated that in-country consolidation was a key focus for the group and this strategic move is very much in line with that,” the company said in a statement. “The merger will significantly enhance Axiata’s position to a stronger growth platform whilst also establishing a strong beachhead for the group in Indochina, a focus region for expansion.”
Axiata said it expects the merged operations to become earnings accretive for Axiata within the first year of operations.
The transaction has an enterprise value of US$180m, will be funded via a combination of internal cash and debt from existing financial facilities.
The deal, which is subject to regulatory approvals, is expected to close in Q1/2013.
