Malaysian telco Axiata is considering making an offer for Indonesian mobile operator Axis, according to Bloomberg citing three people familiar with the matter.
Any bid would reportedly be made by Axiata’s Indonesian subsidiary, XL Axiata, the…
Malaysian telco Axiata is considering making an offer for Indonesian mobile operator Axis, according to Bloomberg citing three people familiar with the matter.
Any bid would reportedly be made by Axiata’s Indonesian subsidiary, XL Axiata, the third-largest operator in the country.
Axis, which is majority-controlled by Saudi Telecom Company (STC), is the fifth-biggest Indonesian carrier. Reportedly valued at about US$1bn including debt, according to an estimate from Saudi Fransi Capital, the company is also partly controlled by Malaysia’s Maxis Communications.
A deal between Axis and XL Axiata would give the latter the mobile spectrum it needs to expand in the crowded Indonesian mobile market, a source was quoted as saying.
XL Axiata posted a 2% increase in revenue to Rp5 trillion (US$512m) in the three months to 31 March 2013. “Stable growth was seen in revenue, albeit at a slower runrate than experienced in the previous year,” Axiata said, commenting on its financial results.
XL Axiata president director Hasnul Suhaimi recently told investors in a call that his company would be happy to play a role in consolidating the market.
Similar to the situation in India, Indonesia is currently home to ten mobile operators, many of which are facing financial difficulties. However, consolidation talks have yet to materialise.
Conversely, the Indonesian tower industry has seen a flurry of M&A activity of late. Axis itself has reportedly been looking to sell 1,600 towers for US$300m.
Axiata declined to comment on the speculation while STC was not immediately available for comment.
